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When Life Happens: Top Reasons You May Need to File Bankruptcy

Middle Class Dad how to get your spouse to stick to a budget bio

The number of people filing for bankruptcy is increasing at an alarming rate, especially since the emergence of the pandemic. Because of these extenuating circumstances, millions of people haven’t been able to pay their bills, let alone pay off debt.

Statistics show that over 1 million people file for bankruptcy every year. With such an astronomical number, the real question is why are so many people filing bankruptcy? Is it because people are financially illiterate? Or is it because people are simply reckless with their spending habits?

According to a bankruptcy lawyer in San Diego, the reasons vary from state to state and the different economic situations also play an integral role as well.

But the reality behind why so many people file bankruptcy is simple: “life happens.”

Does it excuse people’s financial behaviors? No, not necessarily, but it sheds light on them in a way that you can either learn from the mistakes of others or continue to operate in mountains of debt, even with there being effective solutions out there to take advantage of.

Whether you can’t pay your bills or are undergoing a divorce, don’t look at bankruptcy as a devastating endeavor, but more so a long-term opportunity to get out of debt for a fresh financial start. If you’re enduring any of these life circumstances, filing for bankruptcy is likely to be the best financial decision for your situation.

Job Loss

No one ever is prepared for job loss whether it be from resignation, termination, or being laid off. For many families, a loss of income is a devastating blow, especially if you don’t have an emergency fund saved up.

With the emergence of the pandemic, families all over the world have suffered from job loss, with Mississippi being one of the hardest-hit states in the US. Reports show that the state is suffering from food scarcity, housing insecurities, and financial issues due to the coronavirus’s impact on job loss in the state. This financial disparity has led many MS residents to turn to Mississippi bankruptcy lawyers for debt relief.


The popular nursery rhyme says “first comes love, then comes marriage, then comes the baby in the baby carriage”… But for many families in America, the song forgot to add the verse of “then comes the divorce.”

People get divorced for many reasons, from infidelity or finances to substance abuse or simply falling out of love with each other. And sometimes, no matter how hard you fight to make the marriage work, it just doesn’t, and that’s okay.

Both people in a marriage deserve to be happy, even if it’s not with each other. When you’ve done all you can to save your marriage, including counseling, talking to an attorney about divorce is your only route to bring the broken marriage to a resolve. It may be hard but it’s how you’ll be able to move forward, emotionally and financially.

Medical Expenses

If you’re anything like most people, you don’t purposely hurt yourself or try to take on any unnecessary medical debt than you have to, but again, life happens and it can sometimes hit you all at once resulting in injury or serious health concerns. When those medical bills pile up beyond your capabilities, it’s time to get in touch with a bankruptcy lawyer.

There are, of course, other reasons people file bankruptcy like emergency expenses or foreclosure of your home, but the three listed above are some of the top three reasons; They’re also the biggest ways life can “happen” and knock you down to your knees.

If you’re struggling financially, don’t drown yourself in debt. Take control over your finances by getting in touch with a bankruptcy lawyer today.

Jeff Campbell