Top Reasons People Go Bankrupt

Bankruptcy is a scary word, and it can happen both over time or very fast. The causes of bankruptcy can vary from person to person but they usually revolve around the same things. 

Below are the top reasons people file for bankruptcy.

Credit Card Debt

Sometimes, when people get a credit card, they spend more than they are able to pay back. If your credit limit is too high for your way of life, this can easily happen. You should only spend money on your credit card that you can pay back every month. Otherwise, you risk getting in way over your head. Its easy to swipe a card but paying back those charges on high interest rates can get you in a deep hole very fast.

Divorce

Divorce can be very expensive and because people have to spend a lot of money to pay for the divorce, they often get into more debt as a result. You may even have to take on partial debt from the other party if you were a cosigner. Unfortunately, this is one that cannot be avoided sometimes. If your marriage has come to an end, you should be cautious of the potential financial pitfalls.

Unexpected Expenses

This can happen at any time and if you do not have money saved up in case of emergencies like this, you may have to take out a personal loan or spend more money on your credit cards. This can result in more debt that you are unable to pay. We understand it is hard to save when you are just trying to get by paying bills, if your bills and unexpected expenses have become to much and you are considering bankruptcy, our attorneys can help you!

Overspending or Failing to Budget

You have probably heard about the benefits of a budget but if you do not have one, you are likely overspending. This can easily lead to living above your means. Build a budget that you can work with and you will find that you can still have fun while not overspending. If you find you cannot get a handle on your finances, we have some solutions that may help, contact us today.

If you have already made these mistakes and are facing bankruptcy, you should call one of our bankruptcy attorneys before doing anything. At Clark and Washington, we are here to help you navigate bankruptcy from start to finish.