On Behalf of developers | February 10, 2025 | Bankruptcy,Uncategorized
Financial hardship can happen to anyone and it affects people across America year after year, resulting in high-level stress and struggles. The solution in some cases is to file for bankruptcy and reclaim financial relief.
There are any number of reasons for which people or businesses find themselves burdened with overwhelming debt. The vast majority of Americans live paycheck to paycheck which leaves us unprepared if life throws a curveball that requires financial action. There are also many situations where even those with significant savings do not have enough cash flow for the situation at hand. After working in the bankruptcy world for decades, Pond Law Firm has seen it all and we strive to keep our valued clients informed about the most common causes of bankruptcy. Most of the common causes arise from situations that are out of anyone’s hands but all the same result in unmanageable debt.
A sudden and unexpected medical emergency or long-term illness diagnosis can lead to overwhelming debt. Insurance rarely covers all that is needed to manage medical expenses, leaving us holding the bag for the remaining costs. While you cannot avoid receiving the care you need, the good news is that medical debt is considered an unsecured debt, so it can be discharged through bankruptcy.
Losing your job is one of the leading contributors to financial difficulties. Without having a steady income to pay for your own or your family’s basic needs and financial obligations, debt can become insurmountable. Between car payments, a mortgage, credit card bills, and daily expenses, financial burdens build quickly.
Many Americans live on very slim margins due to the high cost of living in many parts of the United States and lower wages which means debt can quickly accumulate. To move forward in life, you may have to take out numerous credit cards, personal loans, or high-interest payday loans to make ends meet. Even many people who have higher incomes end up in financial trouble due to overspending and credit card debt. As a result of both scenarios, debt accumulation is one of the biggest causes people claim when filing for bankruptcy.
There are many things in life no-one can control. Fires, tornados, storms, earthquakes, theft, and other unforeseen events may cause anyone to lose homes, cars, and belongings. Losing financial stability due to these unexpected life events can lead to unmanageable debt with seemingly no way out. Bankruptcy does present a viable method of moving into financial freedom and starting fresh.
When a couple splits up, the high costs of legal proceedings, division of assets, and managing separate households can often leave both parties with overwhelming debt. Paying for all the necessary aspects of life on one income suddenly can lead to increased credit card use or result in unmanageable debt.
Entrepreneurs and small business owners across America are forced to shutter their businesses and file for bankruptcy every day. Causes of closing small businesses include the high price of operating, employee issues, law suits, required certifications and insurances, as well as unexpected expenses from natural disasters or pandemics. When a small business incurs significant losses, it can be impossible to generate the revenue to recover and this often results in bankruptcy filings.
For experienced and reliable legal support in a Mississippi bankruptcy case, contact Pond Law Firm. We have the knowledge and expertise to protect your best interests while helping you move through the bankruptcy process to a successful resolution. Bankruptcy may be the best option to solving your financial troubles and Pond Law Firm can lead you through to the other side!