Florida Bankruptcy Causes: The Top Reasons People File for Bankruptcy in Destin

n the midst of financial turmoil, your options may seem hopelessly limited. Have you considered filing for bankruptcy? While this is by no means an ideal solution for everybody, bankruptcy can bring relief from a variety of unrelenting debts.

Each person’s situation is different, but the following are among the main reasons why some struggling residents choose to file for bankruptcy in Destin Florida:

Natural Disaster

Life in Florida can be a dream come true, but with one major caveat: the risk of hurricanes always looms large. If you’re lucky, you’ll simply suffer a high insurance rate. If, however, you find your home and your vehicle in the way of a powerful storm, you could lose everything in an instant.

Medical Expenses

With 13.3 percent of Florida residents lacking health insurance and many others maintaining low-coverage plans, catastrophe lies just one illness or injury away for millions of Floridians. Medical bills can quickly reach six figures, leaving many with no other option than to file for bankruptcy.

Student Loans

According to the Project on Student Debt, the average college graduate carries over $30,000 in student loan debt. Others attend college for a few semesters but don’t graduate. Their reduced earning ability leaves them even less equipped to handle tens of thousands in non-dischargeable debt. While bankruptcy cannot, unfortunately, wipe out student loan debt, it can resolve other forms of debt, thereby making student loans easier to tackle.

Job Loss

Florida’s economy is booming and unemployment is mercifully low, but job loss still happens — and finding a new job can prove unfortunately difficult when you’re not already employed. Those who just barely scrape by while employed may quickly fall behind once an essential source of income disappears. According to the paper The Credit Market Consequences of Job Displacement, households are three times as likely to file for bankruptcy the first year after job loss.

Divorce

In an economy primarily made up of two-income households, many adults are only prepared to tackle financial struggles with help from a significant other. Divorce prompts not only considerable court costs but also reduced household income and increased living expenses. Research highlighted by the Center for Economic Studies suggests that those who opt for bankruptcy are more likely to be divorced at the time of filing.

Overspending

Many bankruptcies can be directly attributed to disasters and difficult family circumstances. On occasion, however, bad spending habits are to blame. Social media has accelerated our inherent desire to keep up with the Joneses. One or two ill-advised shopping trips might not be so bad, but over time, an inflated lifestyle can wreak havoc on your bank account. If you’ve already spent your budget on non-essentials, you’ll struggle to get by when financial calamities beyond your control strike.


John F. Greene Destin Florida Attorney

No matter the nature of your current financial difficulties, you deserve support from somebody who cares. With the right Destin bankruptcy lawyer in your corner, you can rest assured, knowing that a fresh start is well within reach. Attorney John F. Greene is happy to advocate on your behalf during these trying times. Call today or contact us online to learn more.

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