Finding yourself in serious financial trouble is one of the most stressful situations you’ll ever experience. Sometimes emergencies happen through no fault of your own and your accounts get wiped out. Other times, you aren’t a responsible spender. If you’re considering bankruptcy as a last resort, here are four valid reasons to file.
- Medical Expenses
If you’ve had a medical emergency, your savings can be emptied quickly. Even if you have health insurance, expenses can go into the thousands. If you’re thinking about filing bankruptcy because of overwhelming medical debt, wait until the situation is over so you won’t be strapped with additional debt.
- Credit Card Debt
One of the most common reasons people declare bankruptcy is because of credit card debt. Credit card debt isn’t always the result of lavish spending. Many times credit card debt is incurred as a result of an emergency, so contact bankruptcy lawyers near me Edmonds WA to find your best recourse.
- Loss of a Job
When you lose your job and don’t have emergency savings, it doesn’t take long to get into a bind. This can happen without warning, and not everyone is fortunate enough to receive a severance package. If you’ve lost your job and your debt is unmanageable, you may be able to discharge it through bankruptcy.
- Poor Money Management
Often the reason for bankruptcy is that you have poor money management skills. You’ve probably spent way more than you earn and have maxed out credit cards to the point of no return. As part of a bankruptcy, you’ll be required to take a credit counseling course so this never happens again.
No one likes to think about declaring bankruptcy. However, if you have overwhelming medical expenses, credit card debt or have lost your job, it’s time to contact an attorney.