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Most consumers have some type of debt. Certain debts are even considered to be somewhat beneficial. If you’re making mortgage payments, for example, you’re building equity in your home instead of simply sending a check to a landlord. However, debt can get out of control quickly. Unmanageable debt has forced countless U.S. residents to file for bankruptcy. If you’re considering talking to an attorney about bankruptcy, you should know that your financial situation may not necessarily be your fault. Many people who try to manage their money wisely file for bankruptcy due to situations beyond their control.

Job Loss

Being let go or fired has an inevitable financial impact. When you suddenly lose your source of income, you may be forced to use up your savings or charge necessities to credit cards – or even take out a payday loan. Even if you manage to land another job within a reasonable period of time, it can take quite a while to rebuild your savings and pay off the accumulated debt.

Underemployment

Another common reason for accumulating debt is being underemployed. Your company may cut your hours or reduce your wages and benefits. Or, you may have trouble finding a job and be forced into accepting a position that pays minimum wage.

Divorce

Divorce is one of the most common reasons why consumers file for bankruptcy. The process of divorce can be quite expensive. You may need to pay substantial sums of money to your lawyer, along with the court fees. Furthermore, you’ll suddenly have to cope with having only one income and perhaps finding another place to live.

Unexpected Emergencies

Another common reason for debt is unexpected emergencies. You might have a health scare and be forced to have expensive medical tests and treatments that may not necessarily be covered by your health insurance. Or your car might suddenly break down and require expensive repairs. Without a “rainy day” savings fund, it can be difficult to cope with these problems.

When it’s no longer possible to provide for your family and make all of your monthly payments, it may be time to consider filing for bankruptcy.