5 Unavoidable Causes of Bankruptcy

Many people think that they would never be in a position to need to file for bankruptcy. But the reality is that anyone can find themselves in dire financial circumstances and in desperate need of debt relief. Unexpected things can happen, and we can find ourselves caught up in a spiral that we can’t seem to stop.

Sometimes, filing for bankruptcy in Tucson can be the inevitable outcome of certain circumstances. Here are just five things that can make bankruptcy seem unavoidable:

Jar With Bills

Job Loss

We all know that we should have an emergency fund that would cover six months of living expenses, but few of us actually have such a fund. In fact, few of us have any savings at all. Many of us live from paycheck to paycheck, even if we make a good income. The more most people make, the more they spend by increasing their quality of life, such as getting a bigger house or buying a more expensive car.

So, what happens if you lose your job? You may not think that it can happen, but it can. Even people with plenty of experience and seniority can be laid off without notice. If that were to happen to you, you might have to live on credit cards or take out loans to cover your living expenses. Those debts may become uncontrollable before you can get another job, and you may need to file for a Tucson bankruptcy.


Going from two incomes to one can put a huge strain on your finances. In fact, you may not be able to cover all your expenses on your salary alone. Add to that the other expenses divorce brings – such as getting a new home, buying new furniture, and exorbitant legal fees – and you may soon find your finances situation reaching a desperate level.

Filing for bankruptcy near Tucson may be the only way to save some of your assets after a divorce. You could have credit card debt wiped away, freeing up money to pay other expenses. Or you could get on a repayment plan that would help you better manage your finances.


Obviously, your own death would wipe away any financial troubles you experience forever. But the death of your spouse could bring on unexpected financial pressures that you can’t overcome. Your spouse could die suddenly in an accident or even of an underlying condition that neither of you knew existed.

Even if your spouse has life insurance, it may not be enough to cover all the debts in your spouse’s name or to cover all your living expenses. You may find yourself in over your head and needing the debt relief that bankruptcy offers.


A long illness can pose a number of financial problems. It could mean that you or your spouse are out of work for a long time, without any pay. It could also mean huge medical bills, even numbering into the tens of thousands.

Hospitals may give you a payment plan, but that doesn’t mean you can afford to keep up with it. Filing for bankruptcy near Tucson can clear out medical debt completely if you qualify.

Bad Financial Habits

You might think that you’re good with money, but the truth is that most of us aren’t as good with money as we think. Financial problems also don’t start as obviously as they end. You can start out having problems by just being a little too liberal with the credit card. Over time, you build a habit of eating out or shopping and putting everything on your card. Those bad habits build on each other until you have a major problem and don’t know what to do about it.

Bankruptcy can save you from your own bad financial habits. You’ll just need to correct them or else you’ll end up having the same problem again.

Bankruptcy may not be as distant a possibility as you think. There are plenty of circumstances that can occur without warning that can leave you in dire financial straits. After situations like these, bankruptcy can almost seem inevitable. It’s important that you talk with a bankruptcy lawyer in Tucson to explore your options and find the best choice for debt relief.

My AZ Lawyers can help. Our Phoenix bankruptcy lawyers can review your financial circumstances and help you understand if bankruptcy would provide the debt relief you need. Our experienced bankruptcy attorneys in Tucson can file your bankruptcy if you decide to move forward and help you resolve your financial problems quickly. Call us in Tucson today to learn more about how bankruptcy may be able to help you.

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