Bankruptcy Can Be a Solution and Can Happen to Anyone.
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Below are some common causes of bankruptcy and why you may be faced with declaring bankruptcy.
Lack of Budgeting
No matter your current salary, creating and sticking to a budget is the best way to manage your finances properly. However, many people fail to do this. For some, a lack of money management skills prevents them from budgeting effectively. Overspending can also easily create high credit card account balances. It is important to remember that you may encounter a point where you cannot maintain a steady income.
Bad Investments/Changes in the Market
Making a series of bad investments can quickly drain your financial resources.
For example, let’s say you put your money into real estate. Your net worth could drop significantly in weeks or months if the market worsens. If your money is tied up in certain stocks, they should be monitored regularly to ensure you gain a return on investment. We saw that the pandemic took its toll on everyone. The pandemic brought to light the fact that anyone can face bankruptcy. If you are behind in your mortgage payments, Chapter 13 bankruptcy can help you. You can get current with past due mortgage payments in Chapter 13 and keep your home.
Costly Medical Bills
Many can quickly spend more money than expected on medical emergencies. Crucial medical surgeries or procedures can be costly, even after insurance coverage. Unexpected medical bills are a common reason some go bankrupt for financial assistance.
Some planned well but are faced with unexpected medical debt. This is an important point that reaffirms that bankruptcy can be a viable solution. In a Chapter 7 bankruptcy, you can eliminate all your medical bills.
Income or annual salary does not determine your need to file bankruptcy
Many celebrities have looked to bankruptcy to eliminate their outstanding debts. Some of the most recognized celebrity bankruptcies include: