5 Events That Can Lead to Bankruptcy

Common Events Causing Bankruptcy

Information From an Alabama Bankruptcy Lawyer

If you are struggling with impossible debt, you are not alone. The Great Recession has changed things; good people are out of work due to no fault of their own.  What do you do when your employer closes?

In 2009, more than 29,000 non-business bankruptcy petitions were filed in Alabama, according to the Administrative Office of the U.S. Courts. Bankruptcy is a safe and legal way to escape unmanageable debt, reorganize your finances, and get a fresh financial start.

But what causes the kinds of financial crisis that can lead a person or family to consider bankruptcy? At the Birmingham law office of Brent W. Davis & Associates, L.L.C., we have helped people from all walks of life who are struggling with their finances. In more than a decade spent serving Alabama residents, we have learned that there are several common causes of bankruptcy.

It is important to note that bankruptcy law does not require you to have experienced one of the following events to qualify for bankruptcy. Birmingham bankruptcy attorney Brent W. Davis provides this information to help you understand that no matter what difficulties you are facing — other people have faced the same struggle and have survived with help from our office.

Have Any of the Following Happened to You?

• Unemployment or reduction in hours: Loss of expected monthly income can quickly lead to financial struggle, especially for families who need their entire paycheck to pay monthly expenses.
• Family illness: Whether or not you have health insurance, a serious illness can cost tens of thousands of dollars. Many people facing serious health problems max out their credit cards to pay health care bills and then find themselves unable to pay down the credit card debt.
• Divorce: Divorce can lead to financial crisis and bankruptcy for many reasons. A two-income household may become two single-income households. Or, a single earner may be required to pay spousal maintenance along with his or her own expenses. Child support costs may be higher than expected. And, the cost of a divorce, including attorneys’ fees, can be overwhelming, especially in a hard-fought marital separation.
• Birth of a child or the birth of a special needs child: Adding a new member to the family should be a joyous occasion, but children also require major financial resources. This issue is only compounded when a child has special medical or educational needs due to a disability.
• Inadequate retirement income: All too often, people retire and then learn that their retirement income will be lower than they planned for. Even after cutting down expenses, many retirees find they cannot meet their monthly financial obligations on a fixed income.  Many of us have seen our 401K and retirement accounts lose value every month.

Contact Birmingham Bankruptcy Lawyer Brent W. Davis

If you have questions about financial difficulties, if you are facing collection calls from credit card companies or your mortgage lender, talk to an experienced bankruptcy attorney to learn about your options.

Bankruptcy may be the best way for you to get back on stable ground and get a fresh financial start. Contact the law office of Brent W. Davis & Associates, L.L.C., to schedule an appointment.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.