The word bankruptcy is still often associated with negative connotations. It may be seen as some sort of failure or the result of financial carelessness. In reality, this is far from the truth.
Many people across the country are struggling to pay their bills each month, living from paycheck to paycheck with no margin for error. Financial hardship can fall upon a person unexpectedly, through no fault of their own. Outlined below are some of the most common reasons why people face bankruptcy.
Employment issues
As previously stated, many people across America rely on their paycheck. Jobs are not guaranteed and employees in New Jersey are typically employed at will. While most employers will value their workers and keep them on if they do good work, decreased profitability may lead to no other choice than to let staff go. Financial commitments are often based on your ability to work, and it is very easy to fall behind and get into debt if you can no longer honor such agreements. Unless you have engaged in some sort of misconduct, then losing your job cannot really be said to be your fault.
Family changes
You and your spouse may have grown apart. The best choice for your relationship might be to pursue a divorce, but this isn’t necessarily what’s best for your finances. Even in an amicable divorce, both parties will take some sort of financial hit. Your savings, income, and assets will be somewhat reduced, leaving the potential for you to land on hard times economically. Not all relationships work out and there is not always fault during a divorce.
Your health
Health care isn’t free and you shouldn’t have to go without it. Sadly, some people are left with the decision of taking on debt or neglecting their healthcare. Thus, it is difficult to blame people for choosing the former and landing in debt due to health reasons.
The headlines on bankruptcy are not always accurate and it is important to delve deeper into the subject. If you find yourself in hard times financially, be sure to assess your legal rights.
