Ever think about how someone who has filed bankruptcy actually looks like?  Do they look homeless? Are they begging off your freeway exit?  How about their demeanor? Are they sad all the time, and destitute? How about their age? Old, young, or somewhere in the middle? Does bankruptcy make you sad, or hungry, or does it make you ashamed? Are people who file bankruptcy happy, over-weight? Are they smug because they’ve gotten away not having had to pay debts?

Being in the bankruptcy field, it’s easy not to judge people who come into a law office asking for help.  The reason for this is that it’s been the exception and not the rule to have people trying to get away with something. Most people who are considering a bankruptcy have serious horror stories about medical issues, divorce, job-loss are all of the above. They are dealing with overwhelming amounts of debt, credit cards, medical, even lawsuits being thrown their way. And despite their efforts to resolve their money problems, it seems like many have arrived at the decision that bankruptcy is really their only way out at this point.

People who file are rarely poor and they’re rarely young.  Often the opposite is true, because those who are poor or those who are young do not really have enough access to the credit needed to justify a bankruptcy. This is quite common for an experienced group of dfw and specifically dallas bankruptcy lawyers to see.  For example, people who are poor often qualify to receive medical care for free.  And young people also rarely require costly hospitalization to handle expensive debts from medical costs.

Here are the most common causes for bankruptcy:
1. Lost a job, often even people will lose employment after working years for a company, or have their hours cut due to things like the changes in the healthcare laws recently. Other factors that can negatively impact a job include the financial strength of the employer, or more.
2. Serous accident or prolonged major illness, typically requiring major medical care and even one ore more long stays in the hospital. Often these situations come at times when there is no insurance, or even if there is insurance, the illness or injury was so major, that even the money in out of pocket co-pay expenses went over $20,000.
3. Over-extended themselves in real estate investments or simply invested in real estate at all.
4. Built a business that ended up hitting hard times, started their own business which took too long to launch, or struck out on their on in a self employed position while not having sufficient cash to cover expenses, or simply didn’t have the kind of management, marketing, or accounting skills necessary to make it happen.
5. Offered to co-sign on a home or car loan for a friend or family member and the other party ended up in serious default.