What are some potential causes of bankruptcy?

There are many potential causes of bankruptcy. Some common ones include:

1.            Medical expenses: Unexpected medical bills can be a major contributor to bankruptcy, particularly for those who do not have good health insurance.  All it takes is one medical emergency and that could cost upwards of 6 figures.

2.            Job loss: Losing a job can lead to financial difficulties, especially if it takes a long time to find a new one.

3.            Divorce: The costs associated with divorce, such as legal fees and the need to support two households on one income, can be a major contributing factor to bankruptcy.

4.            Overspending: Spending more money than one makes, or taking on too much debt, can lead to financial difficulties that may ultimately result in bankruptcy.

5.            Business failures: Businesses can fail for a variety of reasons, and if a business owner has personally guaranteed the business’s debts, they may be held personally responsible and face bankruptcy.

6.            Natural disasters: Natural disasters such as hurricanes and earthquakes can cause significant damage to property and disrupt businesses, leading to financial difficulties and possibly bankruptcy.

7.            Poor financial management: Lack of financial planning or mismanaging one’s finances can also contribute to bankruptcy.

If you need assistance with filing for bankruptcy, give my office a call today at (818) 714-2200.  I have a limited amount of appointments available, so please contact us immediately to get started with your new debt free future.

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