| A recent study by Dan Jones and Associates, an independent
research firm, found that filing bankruptcy was brought on for some
people by circumstances that were not of their making, while for others
it was clearly factors within their control.
Circumstances outside of their control were:
- Unforeseen events such as job loss, catastrophic illness or disability,
unexpected family needs, car accidents or expensive repairs, and
theft, or fraud;
- General economic conditions such as low wage jobs without chance
of promotion, unemployment, lack of affordable health insurance,
chronic medical condition, predatory lenders or other “assistance;” and
- Lenders too anxious to grant credit to borrowers with little
chance of paying all of their debt.
Factors over which they could have some control:
- Lifestyle choices such as divorce, unhealthy relationships, substance
abuse, or handing over financial responsibility to others;
- Poor financial management such as credit card over-extension,
borrowing to pay credit card minimums, failure to save for emergency
or unexpected events, indiscriminate spending. For many families
long-term financial problems have led to the point at which their
monthly expenses equal or exceed monthly income. Their shaky
financial status then makes these families vulnerable to dishonest
creditors
who take advantage of them. Most choose bankruptcy only as a
last resort.
|
