When it comes to filing for bankruptcy, there are many reasons why people may find themselves in this situation. According to a recent study, the number one reason for filing for bankruptcy in the United States is loss of income. Nearly 78% of respondents cited this as their primary reason for filing. This is not surprising, as most of us rely on our income to pay our bills and cover our expenses.
Medical expenses are also a major factor when it comes to filing for bankruptcy. Even if you have health insurance, it may not cover all of your medical treatments, leaving you with a large bill that you can't afford. In fact, 72% of those who filed for bankruptcy due to medical expenses had some form of health insurance. University education has become increasingly expensive, and many people find themselves with student loan debt that they can't pay off.
In the United States, about 42.9 million Americans have federal student loans, meaning that 1 in 8 people have student loan debt. This debt can quickly become overwhelming and lead to bankruptcy. Foreclosure is another common reason for filing for bankruptcy. When individuals or couples can't afford their mortgage payments, foreclosure often occurs.
Rather than facing the loss of their home, couples often resort to bankruptcy to help them keep their home. More than one percent of bankruptcies are filed to avoid foreclosure. Divorce is another circumstance that can lead to bankruptcy. Divorce proceedings are costly and can result in significant financial losses for individuals.
In some cases, spouses are also required to pay spousal and child support, which can increase their financial burden.At Wadhwani & Shanfeld, we understand how difficult it can be to face financial hardship and the need to file for bankruptcy. We have helped more than 20,000 people in California regain financial freedom and resolve their debt situation. Our team has the knowledge, skills, and experience needed to help you get the compensation you deserve.