Nobody plans to file for bankruptcy. Ideally, they work, are able to raise a family, pay the necessary bills and never get too behind on their finances. But life happens. Sometimes events such as a surgery or a storm occur without any warning and are totally beyond anyone’s control. Other events like gambling debts and spending beyond one’s means are within a person’s or a couple’s control but still probably qualify a debtor for bankruptcy.
Some of the main reasons people need to file bankruptcy are:
Every year the cost of premiums just seems to keep going up. If you don’t have insurance, just one night in a hospital can run in the tens of thousands of dollars. Multiple nights can cost hundreds of thousands of dollars. Even if you have insurance, the deductibles can be over $10,000. High medical bills are most likely to hit those in their 30s, 40s, 50s and early 60s.
High Mortgage Payments
Due to the recession, many homes are worth less than their mortgage — making it almost impossible to refinance or to even sell one’s home. Even households with two jobs can find it difficult to pay the mortgage.
Loss of a Job
The unemployment rate is still extremely high. Many jobs are temporary. If you lose your job and you’re older, it can be very tough to find new work. If you’re out of work, you can’t pay the bills.
Unpaid Credit Card Bills
Some people overextend themselves because they’re using credit cards to pay medical bills, the mortgage or even food bills. Sometimes, some people just over-shop.
It should almost go without saying that nobody aims for bankruptcy. However, living in New Jersey is expensive. The vast majority of bankruptcy filers are hard-working people just trying to make ends meet. If your bills are too high to meet your daily payments, there may be options like short sales, loan modifications or a Chapter 7 or Chapter 13 bankruptcy. There may be ways to keep your home and your car. Contact the New Jersey law firm of Garland & Mason, L.L.C. today for consumer debt advice today. Call us toll free at (732) 358-2028 to schedule a free consultation.