Most Common Reasons for Bankruptcy in New Orleans

An empty piggy bank.

The reason that people file bankruptcy varies, but studies show that there are three reasons more common than others:

  1. Unexpected medical crisis
  2. Loss of a job and long-term unemployment
  3. Divorce or separation

Excessive Medical Expenditures are the Leading Reason for Bankruptcy in New Orleans

Research by many entities indicates that the number-one reason people decide to file bankruptcy is due to overwhelming debt from medical expenses. When you or someone you love faces cancer, a severe injury, heart disease or a stroke, you do not consider the cost of restoring your health. Medical costs can be exorbitant and can cause undue stress.

Most consumers have health insurance, but may find they do not have enough coverage to pay for all necessary medical care. With lifetime caps on some coverage, a person who faces a catastrophic injury such as a traumatic brain injury or paralysis may find that the cap is met within the first year of treatment. Some studies indicate that over fifty percent of bankruptcy cases are filed due to an unexpected health crisis.

If you have found you can no longer pay your bills because of medical expenses, you need to consult with a bankruptcy attorney. In New Orleans, Grand Law Firm offers expert advice to their clients while helping them restore their peace of mind.

Other Common Reasons for Bankruptcy

Today’s economy has left many people unemployed for long periods of time. The loss of a primary or secondary income in a household can leave a family with too little income to pay the monthly bills. Often, bankruptcy may be the only form of relief to offer any hope of relief.

A divorce may create financial stress that leads to bankruptcy. Divorce is never easy but compounded by financial strain, a person may feel like there is no way to find help.

If you need to file for bankruptcy, reach out to our New Orleans bankruptcy lawyer at (504) 608-5208 begin a free phone consultation today!

Grand Law Firm has offices in New Orleans and Metairie and can offer the best advice for debt relief. Call today to decide if bankruptcy is your best option.

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