5 Common Causes Behind Hiring Kansas City Bankruptcy Lawyers

We can't see the future, and although no one deliberately makes decisions that lead to needing a Kansas City bankruptcy lawyer, it happens all the time. Debt accrues interest, fees, and grows beyond what many would ever imagine. At some point, it's simply unmanageable. Excessive spending or the use of credit cards is only one possible reason. The majority of the time something comes up in the form of a crisis, and the money simply isn't there.

Of all the reasons that a person files for bankruptcy, medical expenses are at the top of the list. Surprisingly, more than half of all bankruptcies filed are due to medical expenses. A Harvard study done found that it accounted for approximately 62% of bankruptcies. It's not just being uninsured that is the problem. A whopping 78% of those people had some form of health insurance. No matter how prepared you are, bad things can happen and take a massive toll on your finances. People often put off talking with a bankruptcy attorney. But when you can't pay your monthly bills because of your debt, miss payments on hospital bills, and endure harassment through letters and phone calls, it may be the only way to move on with your life.

Losing a job, and therefore income, is the second most common cause for bankruptcy filings. When you need a job to pay your bills, it's easy to see how you can wind up in a bad financial predicament without one. Unfortunately medical issues often go hand in hand with job loss, meaning that many lose out on income exactly when they need more. Getting laid off in a bad economy is something many Americans have faced in the last ten years. For them, finding work that pays them well can take a long time. After months or even years, filing for bankruptcy may be the only way to get back on their feet.

Taking out too many loans or spending too much on credit cards falls at number three on the list of bankruptcy causes. As time passes, loan and credit debt increases, making it more and more difficult to pay off. Once you start missing payments it can get out of control quickly. It's time to find a good bankruptcy lawyer in Kansas City when you start missing your payments, using credit cards to pay for necessities, or using credit to pay for other debt.

A separation or divorce is incredibly difficult on many levels. Divorces bring tons of legal expenses, force the dividing of assets, and usually involve some type of child support or alimony payments. It's incredibly expensive when it's all said and done. Sometimes, a bankruptcy is the only way for people to truly start over following a massive change like that.

In general, unforeseen expenses make up the fifth most common cause for bankruptcy. If you don't have the savings to handle major costs, such as losing your home in an earthquake, or buying a new car after an accident, it can lead to a snowball effect in other financial arenas. Everything else may be up in the air, but you can count on one thing. A Kansas City bankruptcy attorney can help you get past your financial troubles, and on to a better future.

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