REASONS BEHIND BANKRUPTCY

Bankruptcy is a legal status of an entity that cannot repay debts to the creditors. Bankruptcy is always imposed by a court order regarding creditor. Bankruptcy is not a synonym of the insolvency condition and it is not the legal status. Personal bankruptcy has raised at an alarming rate.

According to USA bankruptcy court statistics, more than 1.5 million people files for bankruptcy annually.  Most significantly, nearly 97 percent of bankruptcy requests are filled by individuals. If you want a Bankruptcy lawyer san Antonio, then you should know first that what a Bankruptcy lawyer can do for you and how can he help you with your issues.

Following are the reasons behind bankruptcy:

  • Now a day, medical expenditures which are made are very expensive. Medicines cost so much. People even het loans to pay off their fees. This problem of medical expenditures can cause bankruptcy.
  • To earn more revenue and cut off the expenditures, the businessman cut the extra bonuses and allowances of their employs. Thus, leads to the result of employs bankruptcy. Yes, employs get bankrupt too and the reason is low salary. When all the bonuses are cut off and their salary is reduced they are not able to pay off the bills.
  • Just as the people whose salaries are reduced, jobless people face bankruptcy too. If a person is jobless that does not mean that their expenditures and expenses will disappear. The expenses of the unemployed person are same as the employed person, but an unemployed person does not have means to fulfil his requirement. This leads to the bankruptcy of unemployed people.
  • Everyday many people get divorced. The divorce may sound easy, but it cost money. Divorce is a costly business. Throughout the process a huge amount of money is spent. The expenditures which are made can also cost divorce.
  • A research was done on the issue of bankruptcy and the result have shown that at least one percent of the bankruptcy are filled by student. Many students take loan for their education but after some time, when their expenditures rise they are unable to pay off the loan amount and that results as student bankruptcy. Yes, student go bankrupt too. 1% bankruptcy ratio shows that almost fifteen thousand students go bankrupt every year in the US.
  • Utility payments is a headache these days. Many homeowners have said that they are not able to pay off the utility bills. The electricity, water and gas rates are rising everyday drastically. This rise in price is forcing people to go bankrupt.

Every person should know that budget is very important. If a person does not follow budget or is bad at making budget, then this can lead to overspending. There are two types of Bankruptcy Lawyer in San Antonio, commercial bankruptcy is lawyer who helps to file bankruptcy for businesses, and if a person wants to file bankruptcy for himself then there is a consumer bankruptcy lawyer who files personal bankruptcy.