Top 5 Reasons Why People File Bankruptcy In Indianapolis
There are different reasons why people need to file bankruptcies like loss of job, medical expenses, unexpected expenses and divorce.
Bankruptcy statistics in Indianapolis is quite alarming. In the past few years there has been a dramatic increase in the numbers who are not able to pay off the debts. There are some of the common causes why people file for Bankruptcy. One of the main reasons is medical expenses. Study has proved that medical expenses is the main cause and represents nearly 60% of personal cases. Serious or rare diseases can result in thousands of dollars in medical bills and this can quickly wipe out all savings & retirement account, home equity and college education funds. Once it has been exhausted, bankruptcy is the only shelter that is left. Second reason is the loss of job. Whether the individual has lost his job due to resignation, termination or layoff, loss of income from the job can be devastating. Some of them are lucky enough to get severance packages but some of them find pink slips on their lockers or desks with no prior notice. If he does not have any emergency fund to draw from then it will worsen the situation & using credit cards to pay bills can be even more disastrous. Thirdly it is the excess or poor use of credit card. Some people cannot control their spending. Installment debt, credit card bills, car & loan payments are normally out of control, until the borrower is not able to make the minimum payment. If the borrower can’t access the funds from friends and families, then it is time to depend on Terre Haute bankruptcy attorney.
How divorce people can end up in bankruptcy?
Marital dissolution can create tremendous financial stress for both the partners in different ways. First it is the legal fees that can be astronomical followed by division of assets, alimony, child support and finally the cost to keep 2 separate households after the split. If the spouse fails to pay the support as dictated in the agreement can leave the other destitute completely.
What unexpected expenses can lead to bankruptcy?
Loss of property due to casualty or theft like floods, earthquakes or tornadoes for which the owners are not insured can be forced into bankruptcy Indianapolis. Most of the homeowners are not aware that should take out a separate coverage when certain events like earthquake occur. Those people who do not have any coverage for these types can face loss of not only their homes but also can face on their possessions. Not only they need to pay to replace the items but also should find immediate food & shelter.
Author Bio :- This article is written by James Stew. With the experience he felt the need to educate the people about legal matters, what better could he find than writings. For more information please contact-us