A lot of cases of bankruptcy are not caused by crazy or reckless spending, but by financial hardship. Many lower-income individuals who simply can't afford to deal with unexpected major expenses such as job loss or high medical bills.
The number of bankruptcy filings in the United States has steadily increased over the last century, especially from 1980 to 2005. The majority of bankruptcy cases are now filed by consumers and not by businesses. It used to be 13 percent that it was accounted for, now it is only 3 percent.
Annual bankruptcies vary by state. Bankruptcy policies are different in each state and because some states are more populated than others. Studies have shown bankruptcy occurs more often in states with more lenient wage garnishment laws. Although there is a typical profile of someone in bankruptcy and certain life factors that make bankruptcy more likely,no one is immune to severe financial troubles.
For more information on bankruptcy in or around the Houston area, schedule a free meeting with a bankruptcy lawyer from the Rashid Law Firm by calling us at 832-209-8833 to schedule a free initial consultation.