Bankruptcy is often thought of as something that only happens to people when they have been careless with money. While overspending and exceeding your means can contribute to bankruptcy, this is not always the case.
In fact, the main causes of bankruptcy seem to be applicable to regular, hard-working citizens. Millions of people in the U.S. are struggling just to keep the lights on or heat their homes. Such financial hardship is often the root cause of bankruptcy, which can happen to anyone, and here’s why:
Covering medical costs
Medical treatment isn’t free and people can’t control when they get ill or are injured in an accident. The number of people in the U.S. who are struggling to cover medical bills is staggering. People are often left with no option other than to dip into savings accounts, college funds or release equity from the family home. Once these options have been explored, there isn’t much else that can be done. Anyone can be affected by medical expenses and when they run out of control, bankruptcy might be the only feasible option.
There are few elements more powerful than the weather. Various parts of the country have been hit by storms, floods, blizzards and forest fires in recent years. The destruction caused by such natural events can be catastrophic. Insurance companies do not always cover such instances, and where a person has been impacted, they could soon find themselves in financial difficulties.
If you are facing financial hardship you should remember that you are not on your own. There is a way to get through it and rebuild your life. Gaining a better understanding of your legal rights when struggling with debt will help you to get back on your feet.