Financial woes affect many people across America. Frequently, bankruptcy is viewed as something that can only impact those who have been careless with their money. However, this could not be further from the truth.
Though poor financial management can be at the heart of bankruptcy proceedings, this is not the case for most people. Financial troubles can fall upon individuals who have done nothing but work hard and live within their means. Outlined below are some common examples of how bankruptcy can affect anyone.
The breakdown of a marriage
Not only can a divorce be draining in terms of emotions, it usually has a significant financial impact. Simply getting prepared legally for the divorce procedure itself can be costly, without considering the sums needed for lengthy disputes as well as the aftermath.
Where children are concerned, parents will frequently need to provide child support on top of covering medical expenses and college fees. All of these factors can take their toll on a person’s finances, meaning that they might need to rely on credit which can soon turn debts into totals that cannot be managed.
Sadly, people across America have been hit by adverse weather conditions in recent years. The damage caused by storms, earthquakes, and floods can be catastrophic.
As well as the physical devastation, natural disasters can place great financial pressure on individuals who have been directly affected. Finding a new home after its destruction is not an easy endeavor in practical or financial terms.
Loss of employment
The job market can be volatile at times. Consequently, hard-working people may find themselves out of work. Despite having no income, people still need to eat and have a roof over their heads.
With no money coming in, it is easy to turn to loans and credit cards. With no viable means of making repayments, people can soon find themselves landing in debt that has gotten out of hand.
Facing financial trouble is not necessarily your fault and you are entitled to assistance. It is also important to remember that you have legal rights when going through bankruptcy.