Bankruptcy Misconceptions

: Reese Baker & Associates

  Filed under: bankruptcy

Some misconceptions about bankruptcy are that the person that filed bought lots of stuff they had no intention of paying for, or lived foolishly and now want it all cleaned up.

Most of the people that file bankruptcy protection are honest hard working people that due to unforeseen circumstances put too much debt load for their income level.

Job Loss

Most of us do not have a couple of months of debt saved up to help us get through if we had an unexpected lay off of job loss. If you are lucky to get unemployment benefits, often that does not cover all your living expenses and whatever bills you need to pay on a monthly basis.

Illness

Accidents or long term illnesses can stop any income from coming in, or the wage earner needs to scale back on their job so they can take care of a loved one. The expenses of medical care and medications can be overwhelming and cause a person to file for bankruptcy to get out from under the additional medical debt.

Bad financial habits

For some of us, we realize too late that we should have prepared a budget to determine our income to our debt. Or if we don’t have any savings built up and we need to replace major appliances or pay for a large unexpected expense, and we put it on credit adding to our already bulging budget.

Divorce or Death

If the principle wage earner leaves the family, it could have dramatic effects on your income. Leaving you unprepared to handle all f the debt on your own.

If you have unexpected expenses and you are drowning in debt, contact a McAllen bankruptcy attorney to find out what options you have to eliminate your qualifying debt and get a fresh financial start.