Declaring bankruptcy provides many people the opportunity to eliminate insurmountable debt and get their finances back on track. However, some debtors are hesitant to take this step, believing the misconception that bankruptcy is only for those who have poor spending habits. The truth is a number of unfortunate circumstances can lead to financial hardship and the need to file for personal bankruptcy.

What Causes Many People to Seek Debt Relief From Personal Bankruptcy?

1. Loss of Employment 

Even when the economy seems to be doing well, anyone can suddenly and unexpectedly lose their job. While some may have an emergency fund or severance package to rely on until they get hired somewhere else, others aren’t as fortunate to have a safety net in place. With no income to pay the bills, overdue notices will start stacking up quickly, and a personal bankruptcy frequently becomes the best solution.

2. Divorce 

Getting a divorce is not only emotionally difficult, but can also be financially devastating. Dividing debt and assets, transitioning from a two-income to a single-income household, and dealing with the additional costs of child support and alimony often make it challenging for one or both parties to afford everyday expenses. Additionally, if a spouse put their career on hold during the marriage, it may be hard finding work again.

3. Medical Bills 

Life is full of unforeseen events, and there’s no way of knowing when you might sustain a serious injury or illness. Medical treatment can add up to thousands of dollars, even for those who have health insurance, and missing work during recovery can result in a significant amount of lost wages. Personal bankruptcy is frequently the only way to get out from under mounting medical bills once savings and retirement accounts have been drained. 

If you are considering filing for personal bankruptcy, regardless of the reason, it’s best to speak with an attorney who is well-versed in this area of law. For more than three decades, Donald L. Spafford, Jr., Attorney at Law has protected the rights of Honolulu, HI, debtors and guided them through the complex bankruptcy process. He will help you explore your options and determine the right course of action for your unique situation. Put an end to your financial struggles today by calling (808) 532-6300 to schedule a free consultation, or visit the firm’s website for more information on their debt relief services.