Common Reasons for Filing Bankruptcy in Massachusetts

Individuals in Massachusetts may declare bankruptcy for a number of reasons, but there are a few causes in the Bay State that are especially common. These reasons may depend on shifting circumstances, and different economic pressures may trigger more bankruptcies in specific
periods. Although times change and the economy may face a variety of hurdles over the years, some reasons for bankruptcy always remain the same.

If you are considering bankruptcy in Massachusetts, it is best to consult with an experienced bankruptcy lawyer as soon as possible. A legal professional can guide you through virtually every aspect of your bankruptcy and help you minimize losses wherever possible. With the help
of a qualified bankruptcy attorney in Massachusetts, your bankruptcy may go a lot smoother than you initially expected.

Reason Number One: Medical Expenses

According to various studies, more than 60% of all Americans who choose bankruptcy do so because of medical reasons. Healthcare reform has had essentially no impact on the number of Americans who file for bankruptcy due to medical costs in Massachusetts. According to a number of additional experts, most Americans are not fully aware of the limitations of their health insurance policies. This often leads to bankruptcy.

Reason Number Two: Career Issues

For Americans who are living paycheck to paycheck (which is by far the norm today), losing their job can spell financial doom. This is another common reason why individuals in Massachusetts file bankruptcy. What makes this even more challenging is the fact that severance
packages and other forms of compensation simply do not cover the bills until people are able to find another job. One 2019 study revealed that 30% of Americans do not have any emergency savings available to deal with situations like this.

Reason Number Three: Credit Card Debt

Despite our best efforts, many of us get in way over our heads when it comes to credit card spending. Some might even argue that the credit card system is inherently designed to encourage excessive spending. Whatever the case may be, many Americans go bankrupt because their
credit card bills simply overwhelm them. That being said, individuals only go bankrupt due to credit card bills when there are no other options.

Reason Number Four: Divorce

Divorces can easily trigger bankruptcy in the state of Massachusetts. Suddenly, you might find yourself in a situation in which you have much fewer assets after your property is divided. If you were already on the brink of bankruptcy before your separation, divorce can push you over the edge.

Enlist the Help of a Qualified Bankruptcy Lawyer Today

If you are looking for a bankruptcy lawyer in Massachusetts who can help you with your bankruptcy, look no further than the Law Offices of Johnson, Sclafani & Moriarty. We have a wealth of experience. Regardless of why you are choosing to declare bankruptcy, we can help you move forward in an efficient, dignified manner. Please contact us now to set up a free initial consultation. 413-732-8356.