Bankruptcy is not an ideal situation; it can be distressing for anyone in dire financial straits to be considering their options to get out of debt. In the United States, debt is rising rapidly during the pandemic. The number of Americans who have amassed high amounts of debt and find themselves in a situation in which they cannot pay it down has been increasing for decades. There are many situations that can cause excessive debt, and despite popular belief that those facing bankruptcies are in the situation because of their own reckless spending, there are actually many other factors that combine to lead to bankruptcy.
If you want to learn more about what bankruptcy in Indiana means for your financial stability and your fiscal future, contact Christopher L. Arrington. Christopher L. Arrington is an Indiana bankruptcy attorney who will review your financial situation and inform you of the best options you have available to secure the most advantageous outcome.
What are the Top Causes of Bankruptcy?
In the United States, the following causes are behind most bankruptcy cases:
- Over 66% of bankruptcies in 2019 were attributed to exorbitant medical expenses. The high cost of medical care combined with medical conditions keeping people from being able to work and earn money makes for a lethal combination. Even the most healthy individual who lives life in a wholesome way can develop a disease or injury that completely devastates their wealth and throws them into a desperate economic situation.
- If the economy is bad or your employer downsizes and you are let go, job loss means you are no longer earning a paycheck. Depending on the climate of the economy and what skills you offer can greatly impact your ability to find new employment and be hired. Even if you can find a job, you may not be paid at the same rate you were in your old position.
- Overspending and expelling more money than you are bringing in is a sure way to send yourself to the “poor house” as they say. Not every home is the same and regardless of if your neighbor drives an expensive car or not, what they have or do not have should not affect you. Similarly, even if you want something, should the item not be something you desperately need, buying it when you do not have the cash to cover the cost is unwise. Every household has its own unique budget that must be adhered to, otherwise financial ruin could ensue.
- Divorce can put tremendous strain on your financial resources and has the potential to accumulate to a level that is unsustainable.
- Life is unpredictable and sometimes things happen that can not be expected or foreseen. Whether it be the loss of your home in a severe weather situation or some other catastrophic incident, a major life experience can impoverish a person quickly.
Speak to an Indiana Bankruptcy Attorney Today
Life is random, and anything can happen. Situations can arise that are out of your control and lead to financial problems that you never anticipated. If you are thinking about bankruptcy in Indiana, call Christopher L. Arrington, a Danville Bankruptcy attorney to schedule your free consultation at (317) 745-4494.