Credit Card Debt and Inability to Pay off Medical Bills Are the Top Reasons for Filing Bankruptcy
Interviewer: What are the top real reasons that individuals file bankruptcy?
Adam: The number one reasons are either unsecured debts such as credit cards balances or massive medical bills.
Interviewer: How about an inability to pay one’s mortgage, thus leading to foreclosure. Is that also a reason for bankruptcy?
A Less Publicized but Fairly Common Reason for Foreclosure Can Be an Issue with a Driver’s License
Adam: Sometimes it’s foreclosures. Perhaps they’re behind on utilities with their home. Quite often people have an issue with their driver’s license, for example, if they have an extremely expensive reinstatement fee or there is a lien on their license from a judgment. As a result, they can’t drive anymore they can’t drive and become unemployed.
Why Do People Delay in Filing for Bankruptcy?
Interviewer: I had no idea that driver’s license could have anything to do with bankruptcy. What are the most common reasons that people would take so long to decide to file bankruptcy or just avoid doing it in the first place? Obviously if they have unsecured debts or the lien on the license, I would imagine that procrastination is the last thing they should be doing.
What would be one of the reasons that it just takes them so long to get to that point where they are finally able to say, “Okay, bankruptcy is the option now.”
Adam: I think that many people try to make it as long as they possibly can, maybe there’s a little bit of a stigma or embarrassment about having to file. Sometimes they just haven’t contemplated what they could net as a result of bankruptcy.
By Adam Hunt