If like many people in North Carolina, you are struggling to pay your bills, you may be wondering about bankruptcy and what drives people to file for it. According to the Huffington Post, more than 1.5 million Americans file for bankruptcy each year and their reasons for doing so are likely due a number of contributing factors.
If you were to lose your job, keeping up with your bills would become a huge problem and that is a conundrum that a number of people face. An unexpected job loss, especially if you have no savings to fall back on, can be devastating and filing for bankruptcy may be the only way out for many individuals.
While some people who are saddled with large amounts of credit card debt are simply irresponsible with money, that cannot be said for all of them. An emergency expense such as a car repair or an unanticipated medical procedure can often end up going on a credit card and those balances can take a long time to pay off. In fact, almost 62 percent of bankruptcies are caused by medical debt and surprisingly, many of the people who file for that reason do have health insurance.
In addition, just because you were able to secure a mortgage to purchase your home does not mean that you will always have the ability to keep up with the costs to maintain the house. These costs can include utility bills, insurance premiums and household repairs, and if it gets to the point that you can’t afford your mortgage either, filing for bankruptcy may be the only means you have to avoid being foreclosed on.