By Velida AlemicKnowing the negative effects that bankruptcy will have on your credit score, why do people still file for it? After researching through some sources I’ve come to the conclusion that people file bankruptcy because they feel there is no other option. There are many different reasons underlying the decision to file for bankruptcy.
One of the main reasons is to eliminate debt owed to creditors. Many people do not realize how much debt they are accumulating until it is too late. Credit cards are so easy to get and use that people don’t really think about the consequences of paying them back and interest that builds if they are not paid. In the end, people may end up paying triple the amount of the transaction.
Stop the foreclosure of your home or the repossession of your car are two more highly likely reasons why bankruptcy is filed. These two assets are important to every living person. In order to take good care of your family, shelter is very necessary. Also, unless you live in New York City, most likely you get in your car every day and drive to work. When the threat of losing your home or automobile rises, people panic and file bankruptcy.
Reduce medical bills and get help for student loans are also two reasons for bankruptcy. We all know how expensive medical bills and student loans are, it is just unbearable sometimes. Receiving medical help is vital to life, but sometimes people wish they were dead than have to pay all of the medical expenses incurred. Also, in order to get a good job, a good education is needed. But good education can be very expensive and sometimes impossible to pay for.
As you can see, some of the main reasons for filing bankruptcy are unavoidable. People don’t just wake up one day and say “hey maybe I’ll file bankruptcy today”, they do it because they feel that there is no other choice, their back is against the wall. With the economy the way it is right now, more and more people will file bankruptcy because they have no funds to pay for their expenses.
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