Most Common Reasons for Going Bankrupt, Part II

Monday, June 29th, 2015, 12:43 pm

There are many reasons people can go bankrupt, and despite the fact that nearly anybody in Brooklyn and elsewhere can find themselves in a precarious financial situation, there are many people who are ashamed or embarrassed. We continue from our last blog on the top reasons people go bankrupt. Medical care, unemployment and various other bills and circumstances can affect an individual or family’s finances to the point where bankruptcy is their best option.


If you live in Brooklyn and need to learn more about bankruptcy- know that it might be a necessary step to getting back on the right track. The experienced bankruptcy attorneys of Michael F. Kanzer & Associates are your biggest advocates for overcoming financial adversity. Contact us to discuss your best course of action to secure your financial future and conquer debt. Call our Brooklyn office at 718-769-7200 for a free consultation.


Mismanagement of credit
There are many who spend beyond their means, whether it’s with credit cards, loans they can’t pay back or a myriad of other expensive habits and choices. Minimum payment may prove to even be too much for you to afford, and even then, you may be looking at decades of debt and thousands in interest. This reason for bankruptcy isn’t always because the debtor is irresponsible, but in many cases, people spend well beyond what they bring in, and this can have lasting consequences.


It’s not pleasant to think about, especially if you’re about to begin a marriage, but in today’s day and age it is crucial to consider possible future divorce or separation and its potential financial ramifications. The dissolution of a marriage leads to legal fees, child support and separating one household into two, among many other costly changes.


Unplanned events
Natural disasters can wreak havoc on a fairly unstable financial situation. Insurance may not always cover the damage or loss from theft, floods or even earthquakes. Of course, the most important thing is that you and your loved ones remain physically unscathed by these events, but the financial hardship can be economically taxing in addition to the emotions you are feeling from experiencing such an event.


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Category: Bankruptcy Law

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