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Stopping bankruptcy stigma and learning why people file

On Behalf of | Feb 3, 2021 | Bankruptcy Law |

If you think that you might be headed for bankruptcy, you might worry about the stigma. It may seem like your friends and family are going to judge you. However, plenty of people file for bankruptcy each year for reasons that are beyond their control. Here are some of the most common reasons for filing for bankruptcy in Oklahoma and throughout the United States.

Bankruptcy for medical reasons

A common reason that people file for bankruptcy is because of unforeseen medical bills. Even with health insurance, an unexpected medical event can throw a strict budget into disarray. While a person deals with health struggles, they also have to wrestle with how to pay their mounting medical bills. Bankruptcy is a way to get a fresh start from unexpected medical debt.

Bankruptcy because of job loss

Another common reason for bankruptcy is job loss. A job loss can occur before a person even has the chance to build up a financial cushion from their work. Despite looking for work, it’s sometimes just not enough to make ends meet. Bankruptcy may help a person handle the financial fallout of an unexpected job loss.

Family changes can cause bankruptcy

Going through a divorce or separation can also lead to bankruptcy. A person may not be prepared for stretching the family budget into two households. The family situation may change suddenly. Bankruptcy may be needed in order to help straighten things out. Alimony and spousal support cannot be discharged in bankruptcy, but it may be helpful for removing other kinds of debt.

Removing the stigma of bankruptcy

When you understand why people file for bankruptcy, it can begin to remove the stigma. There are a variety of reasons that people file, and there may be a combination of reasons involved in any one case. Ultimately, bankruptcy could be a way to get a fresh start when life throws you the unexpected. An attorney may help you decide whether to file and guide you through the process.