One of the hardest lessons in life to learn is that despite doing everything correctly, things may still not go to plan. Many hurdles in life are simply unavoidable. Unfortunately, consumers in Georgia often feel great amounts of shame attached to debt even when it is out of their control. Indeed, two of the main contributing factors in bankruptcy are often completely unavoidable.
Medical debt
Getting sick or hurt is a part of life for most people. However, the cost of treating those illnesses or injuries can be astronomical. Medical bills often place an undue burden on patients and are the main reason for approximately 66% of all bankruptcies. Some of the reasons medical bills are so likely to lead to bankruptcy include:
- High cost of care
- Time off work for treatment
- Compounding effect with other bills
Lost jobs
The second most common cause of bankruptcy is job loss. Again, this is an issue that many people have little to no control over. If a company is not performing well or decides that it can accomplish the same goals with fewer employees, workers may be let go or fired with little to no warning, help or severance pay.
While it is never a good feeling to realize that one can no longer keep up with bills, most people still have options at their disposal. Bankruptcy can be an excellent solution for those who are eager to get their financial lives back on track. Determining whether Chapter 7 or Chapter 13 bankruptcy is the best option is usually the first step on this path, and an attorney who is knowledgeable in Georgia bankruptcy law can usually help provide further guidance on this journey.