A serious life event can force anyone, no matter how well they handle money or prepare a nest egg, into a terrifying situation where they have few financial resources to rely upon. One life event can occur that wipes out their savings or makes it difficult for them to maintain enough income to replenish their savings. Sometimes another life event happens shortly after the first that destroys their financial foundation. If you experience one of the following life events, bankruptcy is definitely a viable choice:
A Major Accident
Natural and man-made accidental incidents create sudden debt from expensive property repair and replacement bills. These types of accidents include vehicle impacts, falls on icy pavements and down stairs or off ladders and home fires and floods. Any repairs bills you experience might also become compounded by expensive medical bills.
Serious Medical Scenarios
Depending on your insurance plan, an acute severe, chronic, rare and/or terminal illness can leave you with high uncovered or repetitive expenses related to your deductible, co-pays, diagnostic testing, treatment or in-home care. If you have a chronic or rare illness, you will likely experience a never-ending cycle of debt while partially or completely unable to work.
Steady Income Loss
Obviously any type of income loss can make it difficult for you to meet your financial obligations. You might then turn to your savings, credit cards or other types of loans to help cover essentials while you look for work. If you go too long without finding a replacement income, you might find yourself without a nest egg and/or facing high late fees and interest.
Personal Identity Theft
Any debts created by a thief in your name probably won’t force you into bankruptcy. Most companies clear out theft-related bills. High debt usually results from income loss when you take time off from work to try to clear up the situation and new bills from legal and other services, such as costs related to credit report corrections and sending businesses proof of your identity. Stress from ID theft can also cause expensive physical or mental health problems and difficulty managing a second life event.
Partner Relationship Changes
Any type of change to a legally-recognized relationship can lead to unexpected loss of work and additional expenses. Whether you’re going through a dispute with a partner over ownership of a business or a soon-to-be ex-spouse over the ownership of property or child custody, legal fees can quickly turn your life upside down.
Although the government provides online bankruptcy resources, you should always discuss your case with a bankruptcy lawyer from a firm like Affiliated Legal Sevices Inc. If you believe that you need to file for bankruptcy because of any of the above life events, contact a lawyer today. A professional will evaluate your case, clarify any bankruptcy details that you don’t understand and help you move forward with gaining a second chance and fresh start.