Declaring yourself bankrupt is pretty an extreme measure, but used in the right way at the specific time, it can save you money, can provide you time and will enhance your peace of mind to get back to your financial state as soon as possible. Howsoever, declaring bankruptcy can also have some ill effects on some aspects such as getting a new car/home or may even have an impact on the job you’ve applied for.
Here we, Pittsburgh bankruptcy lawyer have listed below scenarios which lead to bankruptcy for an individual.
Losing a job: Losing a job can easily lead to bankruptcy if you don’t have a well-stocked emergency fund that can cover all living expenses until you gain a job. You’ll want to be able to pay for not only food and rent, but also transportation, insurance, child-related expenses, utilities, taxes, home and car repairs, and so on. An emergency fund can also be tapped if you have a sudden major expense, such as medical bills — just be sure to replenish the fund as soon as you can.
Reduced income: A more insidious reason that some people end up in bankruptcy is a reduction in their income. You may not completely lose your job, but if your hours are reduced by 25% or you’re moved into a position that pays less, you can suddenly find it hard to make ends meet.
Credit cards: Credit card debt can be very dangerous, and it can snowball out of control if you let it, especially if you have a card that’s charging you interest rates of 25% to 30%, which is worse.
Medical expenses: Sometimes it can seem hard to avoid racking up credit card debt, such as if you’re suddenly faced with substantial medical expenses that you can’t pay off easily. The medical treatment isn’t likely to be optional, and healthcare is generally quite expensive. Thus, it’s no surprise that medical expenses are a leading cause of bankruptcy.
Having said these, have a talk with our Pittsburgh bankruptcy lawyer to know in detail about bankruptcy and how to face it wisely.