If you ask some people, they’ll tell you that bankruptcy only happens to those who are irresponsible with their money. They have this misguided idea that everyone who files made reckless spending decisions and never had any chance to pay off what they owe.
But is this actually true? As it turns out, things that are completely outside of your control actually cause bankruptcy most often, which is why it really can happen to anyone.
Job loss can strike at any time
One of the top reasons for bankruptcy is job loss, and it can happen at any moment. You can be the best employee at the company and still lose your job when the business shuts down or is forced to downsize and eliminate your position. Most people take on responsible debt — like a mortgage — based on their income, so losing that income suddenly means the numbers no longer work.
Medical debt can come from many sources
Another top reason for bankruptcy is medical debt, even for those with health insurance. You could find yourself owing hundreds of thousands of dollars in a short time. You’re not going to forgo the healthcare that you need because of the cost, of course; your health is most important to you and your family. But that doesn’t mean you can afford to pay that debt off in a country with such an incredibly expensive healthcare system.
Can bankruptcy help you?
As you can see, it’s usually not your fault if you find yourself facing overwhelming debt. It happens. You just need to know all of the ways that bankruptcy may be able to help you solve it.