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If you’re facing bankruptcy, then you aren’t alone: Each day in the United States, courts see an average of 2,000 new filings—four times the number that were filed in 2005. Unfortunately, many of these people are hardworking and upstanding citizens who happen to fall onto hard financial times. How does this happen to people? Here are a few of the most common ways:


  • Medical Expenses – A study conducted by researchers at Harvard University found that medical expenses are the biggest cause of bankruptcy in the United States. In fact, medical expenses represent nearly 62% of all personal bankruptcies filed by U.S. citizens. Unfortunately, this study also found that approximately three-quarters of filers had some form of health insurance. Medical bills don’t only affect the uninsured—they affect hardworking people all over the United States.
  • Excessive Credit Card Debt – When used properly, credit cards are a great way to build credit and establish a respectable credit score. However, some people simply can’t control their spending. Families who rely on credit cards to pay for everyday expenses often find themselves with overwhelming and unmanageable amounts of debt. When credit card debt gets out of control, bankruptcy is often the only solution for many people.
  • Unemployment – Becoming unemployed can be a devastating experience, especially when trying to support a family. While some people are lucky enough to receive severance packages, the majority of hardworking individuals are left with little more than a pink slip and pat on the back—unfortunately, neither of these are enough to pay the bills. Not having an emergency fund to draw from only worsens this situation, and debt can easily begin to spiral out of control.

Regardless of the causes behind your financial hardship, the experienced bankruptcy attorneys at Cutler & Associates, Ltd will do everything in their power to resolve your debt issues.