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How do you become bankrupt

Dealing with bank accounts, managing expenses and clearing all bills may sometimes take you to the brink of insolvency. This is definitely not a good sign. It is also identified as being bankrupt for not having enough funds to clear all debts.

So why would you fall prey to bankruptcy? There are many reasons that lead to bankruptcy.

  1. Nowadays, every individual is suffering from one or the other ailments. And ends up piling up medical bills for treatment. It’s a regular practice observed by all leading employers’ to make all their employees get a medical insurance until they are associated with the organization. But having medical insurance doesn’t help at all times. It is one of the main reasons that result into personal bankruptcy.
  2. We all have experienced recession in the market. We know that it had resulted into loss of job on a massive scale. The sudden loss of jobs have left individuals open to a mounting debts and hence they became prone to insolvency.
  3. With the introduction and at the same time, huge spread of international shopping centres, and the working class indulging into buying different products from these centres, using credit cards on most occasions. This behaviour of uncontrolled spending also
  4. Separation with your life partner also increases the burden of expenses on you, for example, supporting your child’s education, alimony, and other household expenditures. And this is another reason why you would be bankrupt.
  5. A natural disaster like earthquakes, floods, etc. stimulates the loss of personal finances, and family emergencies, and you might fall short of finances to bring life to normalcy after such havoc and enter into the debt zone.
  6. People also file bankruptcy in order to clear their property loans and thus avoid any foreclosure by their creditor.
  7. You are finding it difficult to manage your funds, or clearing your debts, seek advice from the various experts available worldwide, which would help you design plans to pay all your debts on time. Without such assistance you may find yourself surrounded by debts resulting into bankruptcy.
  8. Aspiring for higher education has resulted into students opting for loans. Student loans are also an unsecured form of debt and can be incorporated into bankruptcy.