There are many types of scenarios that can force a person or family to have to file for bankruptcy, many of which are out of their control. Changes in the economy, company lay-offs, and emergency situations are just a few of the reasons that can significantly alter a person’s ability to pay off their expenses. These scenarios can cause stress, especially when you have a family. Debt and unpaid bills can lead to lasting consequences for families, including unhappiness and divorce. Being financially responsible does not make a person immune to other issues that can develop, as a bankruptcy lawyer like one from The Law Offices of Ronald I. Chorches can explain. Here are several of the most common scenarios that can cause a person to turn to bankruptcy for financial relief. 

Medical Debt

A leading cause of bankruptcy is medical debt. An ambulance trip, for example, can cost tens of thousands of dollars for someone who does not have health insurance. Life-saving surgical procedures for serious medical conditions can put someone in debt for up to hundreds of thousands of dollars. Accident victims may require treatment that can also incur a large amount of expenses. These are all situations that may prompt someone to file for bankruptcy. 


Unexpected Job Loss

Losing a job is another common cause of filing for bankruptcy. This often cannot be anticipated, especially if economic conditions have taken a sudden downturn. If a person has multiple jobs, a change in income due to reduced hours or the loss of one of the jobs can also cause a drastic change in their financial stability. 


Poor Financial Management 

Some people file for bankruptcy because of a lack of financial management. Poor budgeting, gambling and reckless credit card spending are a few reasons that some people go bankrupt. With the right support and financial management tools, a person will be able to have a better grasp of their finances so that they won’t have to file for bankruptcy. 



Bankruptcy can also happen if a person is ending their marriage. Divorce can be highly expensive, especially if you are losing many assets. Unfortunately, filing for divorce can cause someone to go bankrupt due to legal fees and other expenses. 


Sudden Emergency 

A random or sudden emergency can be a huge setback financially. This can be anything from home repairs, vehicle repairs, or need to make a large payment to avert a certain situation. These events are unpredictable, and often put people in worse financial positions. 

If you need guidance on debt relief solutions, bankruptcy may be right for you. Do not make a decision until you discuss your options with an experienced bankruptcy lawyer, so contact one now.