Money troubles can feel defeating, but you're not alone if you're thinking about filing for bankruptcy. There are many people who go this route, and for a vast number of reasons. While the causes for filing span far and wide, these are a few of the most common circumstances that may lead to this step.

Why Do People File for Bankruptcy?

1. Medical Emergencies

Unforeseen medical expenses are responsible for 19.3% of bankruptcy filings. Though insurance may cover some portions of hospital and doctor visits, patients are often left to cover remaining costs. Also, becoming injured or ill can force you out of work, further worsening financial issues.

2. Loss of Income

Job loss contributes to bankruptcy in 67.5% of cases, which is more than two-thirds of all filings. As companies aim to cut costs and replace more positions with automation, layoffs have become imminent in many fields. Similarly, cutbacks could also lead to salary decreases, which can contribute to financial constraints.

3. Divorce

Going from two incomes to one can have a damaging impact on your finances. Yet, it's not just the loss of your partner's income that can derail your accounts, but also the fees associated with lawyers, alimony, and child support. Additionally, if there was financial trouble before the split, both individuals must often assume responsibility for debts.

No matter which circumstance forced you into bankruptcy, The Law Office of Mark Briden in Redding, CA, can help. Specializing exclusively in bankruptcy cases, this attorney helps his clients navigate the complexities of filing for bankruptcy and puts an end to the harassment from creditors. For your convenience, he also offers payment plans and free consultations, either in phone or in his office. Call (530) 222-1664 to set up your consultation now, or send his office a message online.