Bankruptcy Can Be a Solution and Can Happen to Anyone.   

I offer a free bankruptcy consultation.

Below are some common causes of bankruptcy and why you may be faced with declaring bankruptcy.

Lack of Budgeting

No matter your current salary, creating and sticking to a budget is the best way to manage your finances properly. However, many people fail to do this. For some, a lack of money management skills prevents them from budgeting effectively. Overspending can also easily create high credit card account balances. It is important to remember that you may encounter a point where you cannot maintain a steady income.   

Also, high inflation and increased costs of basic services, food, housing, etc. may have increased so much that you just cannot continue with debts/bills hanging over you.   The best budgeting does not allow for the unaccepted rising costs.

Bad Investments/Changes in the Market 

Making a series of bad investments can quickly drain your financial resources.   

For example, let’s say you put your money into real estate. Your net worth could drop significantly in weeks or months if the market worsens. If your money is tied up in certain stocks, they should be monitored regularly to ensure you gain a return on investment. We saw that the pandemic took its toll on everyone.    The pandemic brought to light the fact that anyone can face bankruptcy.   If you are behind in your mortgage payments, Chapter 13 bankruptcy can help you.     You can get current with past due mortgage payments in Chapter 13 and keep your home.   You will only pay back what you can afford.

Costly Medical Bills

Many can quickly spend more money than expected on medical emergencies. Crucial medical surgeries or procedures can be costly, even after insurance coverage. Unexpected medical bills are a common reason some go bankrupt for financial assistance.

Some planned well but are faced with unexpected medical debt. This is an important point that reaffirms that bankruptcy can be a viable solution. In a Chapter 7 bankruptcy, you can eliminate all your medical bills.

Income or annual salary does not determine your need to file bankruptcy

Many celebrities have looked to bankruptcy to eliminate their outstanding debts. Some of the most recognized celebrity bankruptcies include:

• Larry King
• Mike Tyson
• Toni Braxton
• Dionne Warwick

The reasons why people file for bankruptcy vary, but it is a helpful solution for many.

Bankruptcy Causes are good to know; however, finding a solution is needed when you face overwhelming debts.

Bankruptcy can happen to anyone. Regardless of your current income or savings, it is possible to encounter financial issues. Bankruptcy can eliminate years of acquired debts that you cannot pay off. It can be just the solution you need.

Ralph Ferro Jr., Esquire, can help assess your current financial standing and determine a solution that suits your needs.   Mr. Ferro can get you out of debt.    Whatever your reason for filing for bankruptcy, bankruptcy is not an indication of failure.

Please remember bankruptcy can happen to anyone.    It is an opportunity to move forward.   Bankruptcy causes happen, but filing for bankruptcy may be an option for you.