Did you know that nearly 400,000 people declared bankruptcy in 2022? According to the U.S. Court System, roughly 387,000 had to reset their finances through bankruptcy. While going through the process can be challenging, many people are able to greatly improve their life prospects. Let's take a look at some of the most common reasons people work with a bankruptcy lawyer to reset their financial life.

Loss of Income

Many people are comfortably able to pay their mortgage, credit cards, and other bills until they end up losing their income. Maybe the company they worked for suddenly laid them off or closed shop. Perhaps a medical event has forced them to quit their job.

Once an income dries up, paying your bills could become an insurmountable obstacle. As you fall behind on payments, you could get hit with late fees, and a plummeting credit score could make borrowing more expensive. All of this can lead to dire financial straits. The good news is that by working with a bankruptcy lawyer, many people can turn their lives around.

Medical Bills

If you suffer a severe injury or illness, not only could it cost you an income, but you could also end up on the hook for medical bills. It should come as no surprise that, according to LegalJobs, upward of 40% of US survey respondents were indebted due to medical bills. If you have high medical bills, declaring bankruptcy may be a viable route to financial freedom.

Unaffordable Mortgages

For many families, a home is the most valuable asset they own. The right house or other property can make for a great investment. However, sometimes people get trapped in a mortgage they can't afford, or they realize they got a bad deal on their house. This can result in a mortgage that is simply too high. Sometimes you can sell your home, but it's also possible that the value of the property has declined substantially. If so, working with a bankruptcy lawyer may be the surer course.

Unsustainable Spending

Data compiled by the U.S. Census Bureau and the Federal Reserve has found that the average American had just under $8,000 in credit card debt as of 2022. Unfortunately, some people end up far more in debt and the credit card payments could become unsustainable. Filing for bankruptcy can be part of the process of recovering from unsustainable spending.

If you and your loved one are struggling with debt, and you want to speak with a bankruptcy lawyer, please get in touch. Call us at Christman & Fascetta LLC to get started today.