The Top 4 Reasons Why People File for Bankruptcy in Texas

We often get asked why people file for bankruptcy. Though in some cases, it is as simple as someone living beyond their means, it is usually due to a combination of unexpected life changes. When considering filing for bankruptcy, it’s important to consider these causes fully, so you understand how to solve them and prevent them in the future. Here are the top 4 reasons people file for bankruptcy: 

Divorce or Separation  

The dissolution of a marriage is both emotionally and financially difficult. When a household splits, income is divided, and household expenses increase. These expenses, combined with the cost of divorce proceedings, can leave anyone in an unexpected and often unmanageable financial predicament. 

Medical Bills Caused by Disability, Illness, or Injury

Whether due to high health insurance premiums and deductibles, a loss of insurance due to job loss, or the inability to afford insurance at all, if these expenses are not covered, our finances can quickly get out of control. 

Unexpected Emergencies

Like medical bills, there are other unpredictable life events, such as accidents, or catastrophic weather events, that can cause damage to your most valuable possessions. This is a very common reason for bankruptcy. 

Loss of Income

This is the most common cause of bankruptcy, and it’s no wonder, considering our economy. Companies all over the country are firing or laying off their employees, often with little to no notice. For those without significant savings in the bank, out-of-control debt is often the result.

Have You Considered Filing for Bankruptcy in the State of Texas? Explore Your Options with DeMarco Mitchell, PLLC

Every day, thousands of people file for bankruptcy. If you’re considering this decision, you should understand what’s involved; your best next step is to call DeMarco Mitchell, PLLC. We are leading Plano & Dallas board-certified bankruptcy attorneys and would be happy to explain your options and help you determine the best path forward!