The current economic climate does not seem to favor several people. This has led to a rising number of individuals applying for bankruptcy. In the US alone, the number of bankruptcy applicants each year is 1.5 million or more according to statistics. Australia has more than 100,000 people doing the same. Of significance is the fact that more than 95% of these cases are filed by individuals as opposed to businesses. This basically means more people are spending more than they earn; a situation that may worsen in the future if the economic slump persists. An individual must, therefore, learn how to go bankrupt to survive in these harsh financial times.
Of course being declared bankrupt is not the nicest thing for anyone. A recent survey conducted to find out reasons leading to people applying for bankruptcy revealed the following:
- Reduced Income – Due to the recession, a number of companies and institutions are cutting down on expenses leading to pay cuts as well as reduced bonuses. An individual in this kind of situation could learn from the experts how to go bankrupt.
- Job Loss – Some companies are forced to trim the workforce when there is reduced profit. This has forced them to lay off some workers. The affected have to use up all their saving and since there is no income, they may be forced to borrow and not be able to repay. Folks who have just lost their jobs may find out how to go bankrupt using the right steps.
- Divorce – Divorce is really costly even before the lawyer’s fee is incorporated into the whole bargain. Separation is another thing that may lead to someone losing assets or even savings. In case the other party had debts that the partner had co-signed, it means they have to share the losses. When intending to retain some assets during a divorce, let experts give guidance on how to go bankrupt to avoid losing lots of the property.
- Medical Expenses – More than 50% of bankruptcy cases is as a result of medical expenditure. Ironically, a big number of those who file for bankruptcy citing medical reasons had health insurance. This has debunked myths that only people with no insurance get affected as a result of medical expenses.
- Emergency Expenditure – The unexpected strike at odd times. It may be damage to a car from a breakdown, damage to the house during an ugly storm or a funeral. Such kinds of emergencies can drain someone’s savings, leaving them without a cent. An Australian resident in this kind of predicament should find out how to go bankrupt in Australia offers available at the moment.
- Overspending – While a number of people cannot live within their budgets due to inflation, others are unable to stay afloat because of poor budgeting. Whatever the case, when it is no longer possible to pay debts, someone may apply for bankruptcy.
Bankruptcy may provide a reasonable debt solution, but there are other avenues that someone may explore including debt consolidation. All the same, no one knows when financial strife may strike. Learning how to go bankrupt is, therefore, an important lesson in case the worst happens. For more inquiries, visit https://www.debtmediators.com.au/bankruptcy/.