Reasons Why Some Cannot Avoid Bankruptcy For most people, the decision to file for bankruptcy can be a difficult one and it is generally recommended for them to avoid it as long as there are other options available. However, there are some financial situations where it is the only credit solution possible. Even as some people are very responsible with paying off their debts, some situations may arise where they have no other choice. Bankruptcy Due to Sudden Unemployment One of the biggest reasons that many people find themselves in the situation where they have to file for bankruptcy is sudden job loss or unemployment. Often, such people accumulated their debt when they had good-paying, stable jobs. Their jobs allowed them to purchase their homes, cars, and a number of other things that their pay scale allowed them to purchase on credit. When, for whatever reason, such individuals suddenly face unemployment, they become unable to find credit solutions to meet payments that they are required to make each month. While these people are busy looking for a new job, the bills begin to pile up. Sometimes, these same people will take a job that pays a great deal less than the one that they lost just to start paying off their bills. This situation is not at all uncommon and it is beyond the control of those who find themselves in it. Other Common Situations That Lead to Bankruptcy The unexpected accumulation of medical bills can be another reason that people suddenly have no choice but to file for this credit solution, especially when their medical requirements go above and beyond their insurance coverage. In some situations, individuals have accidents that leave them unable to work or address a growing pile of unpaid medical expenses and a continuous flow of other bills from housing, utilities, credit cards, etc. Going through a divorce can also cause some people to accumulate debt that they cannot afford to pay. A divorce alone will cost a great deal of money. Furthermore, they could also end up having to pay a portion of a debt that they did not personally accumulate. What makes the situation worse, in some cases, is when a spouse files for bankruptcy and the other is left responsible for the entire amount of debt incurred when they were married. Furthermore, those who were unemployed while they were married may suddenly have more financial obligations that they can handle, especially since they will need to find credit solutions to cover their own place to live, a car to drive, and other necessities. These are just a few of the most common situations that can cause a person to lose control of their finances and begin to sink into a hole that they just can’t get themselves out of. Filing for bankruptcy is one of the ways that these people can begin working on a credit solution to find their way out of the mounting debt and credit problems.