Common Financial Hardships Leading To Bankruptcy In MN

Posted by Wesley Scott on April 22, 2019 at 5:34 PM
Wesley Scott

don't let fear get in the way of financial freedomThere are countless hurdles in life that can push us into financial hardship and no one’s journey to and through bankruptcy is exactly the same. But there do tend to be unavoidable similarities in many cases: drop in income, the dissolution of a relationship, and medical debt are facts of life for many of our clients.

Whether it’s the loss of a job for you or your spouse, a demotion, a lay-off, or some other unforeseen circumstance –drop in income is a big reason people file bankruptcy. These situations are never expected and always hit hard. In today’s economy, many people have just enough to get by and an income drop is devastating.

The ending of a marriage or relationship can not only be emotionally and mentally exhausting, it can have wider-reaching effects on one’s financial health too. Bills, utilities, or expenses that were divided amongst two now fall solely on one. While a bankruptcy filing cannot discharge any child support or spousal maintenance, it can help with other debts. This can help to relieve some of the financial burden left by a breakup.

Lastly, a huge factor in many bankruptcy cases is medical debt. With the cost of healthcare there tends to be no such thing as “a little” medical debt. This adds insult to (LITERAL!) injury. People who haven’t experienced crushing hospital fees tend to be surprised to hear that hospitals can be some of the most ruthless and unmoving creditors. Trying to keep current on medical bills can easily cause a person to fall behind on mortgage, car, or other payments in an attempt to stop the harassment from their doctor’s office.

We understand that filing bankruptcy is rarely a “choice” per se. Life happens no matter what. Knowing that so many people experience these hardships and that, while your situation is unique to you, there are those going through similar rough times can be the reassurance that is needed to take the step towards getting your life back together.

If you’ve experienced a drop in income, overwhelming medical debt, or the dissolution of a relationship that is straining your finances, visit www.kainscott.com to weigh your options and set up a consultation with MN’s HIGHEST Google reviewed bankruptcy law firm.