What are some of the most popular causes of bankruptcy?

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Bankruptcy has a negative stigma attached to it, but it is actually a lot more common than people think.  In 2016 almost 1 million Americans filed for Bankruptcy protection.

Almost all Bankruptcy filers suffered a catastrophic personal event such as loss of employment, divorce or serious medical issues.   Many filers were homeowners who were defrauded into obtaining first and second subprime mortgages, seniors on a limited income with extraordinary medical expenses, or unemployed or underemployed college graduates with student debt reaching $100,000.

Bankruptcy is one of the simplest ways to get a fresh financial start and rid your family of the debts that have been plaguing you. Bankruptcy often comes after an unexpected life event that a middle class family was not financially prepared for.

Unexpected medical expenses can happen to any individual. Even if you do have a good health insurance plan, you may still be unprepared for the tremendous cost of hospital bills, rehabilitation, and more. All of your savings can be quickly diminished after just one trip to a hospital.

If a person unexpectedly loses her job, she may not have a savings cushion necessary to get her through until she obtains a new job. Additionally, job loss also means loss of medical insurance, which can devastate a family’s livelihood.

50 percent of all marriages end in divorce.  No middle class wage earner is financially prepared for the legal fees and the cost of alimony, child support, or relocation of a divorce.

Filing for bankruptcy can be the light at the end of a tunnel for those facing unexpected debt. If you are feeling overwhelmed by mounting debt and calls from creditors, you should consult with an experienced bankruptcy attorney today to discuss your options.

If you require the services of an experienced bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq.today to schedule a consultation and discuss your options.