Are the Conditions Right to File for Bankruptcy in Las Vegas?

Unexpected Snowfall Hits Vegas

Snowfall in Las Vegas on February 20, 2019

Las Vegas, Nevada, February 20, 2019

A perfect storm has led to snowfall in Las Vegas this week.  The great 2019 blizzard took much of Las Vegas and Henderson by surprise.  Sometimes a perfect storm in your life can lead you to a financial hardship.  When facing financial hardship, it is important that you seek help to assist you with your debt relief need.

People often have the misconception that people file for bankruptcy because they were simply irresponsible with their finances. People assume debtor’s recklessly racked up their credit cards with vacations, shopping, and frivolous purchases. Just like most people won’t believe that snow if currently falling in Las Vegas, many won’t believe that very rarely are bankruptcy filings due to someone’s irresponsibility.  Take a look outside Clark County, Nevada, it looks like Christmas, though 2 months too late.

In fact, according to a recent study, over spending barely breaks into the top ten reasons people file for bankruptcy. The number one reason for filing for bankruptcy is medical expenses. One trip to the ER can leave someone hundreds of thousands of dollars in debt.  According to a Harvard University study, approximately 62% of bankruptcy filings are due to medical bills and expenses. An even higher percentage also had medical insurance that covered  a portion of the debt.

Job loss or reduced income is also a factor. With many companies downsizing due to the increase in minimum wage, people are starting to see themselves out of work. Often times employees will take a lesser paying position simply to remain employed. Unfortunately expenses don’t change when income does.

A side effect from job loss or reduces income is higher credit debt. This does not mean irresponsible charging. To make ends meet people often rely on their credit cards to pay the day to day bills because their income simply is not covering them. This also includes when there is an emergency such as an air conditioning unit going out, or needing to purchase unexpected plane tickets to attend a funeral.

Divorces or death of a spouse is also a common cause for filing for bankruptcy. It is difficult to go from a two income household to a one person household. Not only do you lose a second source of income, but paying for a divorce can get expensive as well.

Other common reasons for filing for bankruptcy include student loans, higher utility payments, foreclosures, repossessions, and overspending. Sometimes the perfect storm hits with one or more of these issues and the best solution may be to file for bankruptcy to seek a fresh start.  Contact a Las Vegas debt relief attorney today and find out your options.