Declaring bankruptcy is often a person’s last resort when they’re desperate to bail themselves out of a tough financial situation. If you’ve never declared bankruptcy before, and you don’t know many other people who have, you may be under the impression that bankruptcy is always brought on by poor money management. While that’s the case for some bankruptcies, more often than not the cause of the bankruptcy is beyond a person’s control. Read this blog from a bankruptcy lawyer in Mattoon, IL, to learn some common causes of going bankrupt.

Loss of Income

Losing your job can be a devastating blow to your family’s finances. If you’re the primary earner in your household, you may find yourself desperately and frantically trying to find a new job to continue to make ends meet. Of course, ideally, your family should have a healthy savings equal to about eight months of expenses to get you by until you find new employment. However, many families today don’t have this, making a job loss even more stressful.

Even if you do have the recommended amount in savings, it can sometimes take much longer to find a job than you initially anticipated. When that rainy day fund runs dry, and you still don’t have a steady source of income, you may find yourself looking to bankruptcy as a way to escape the crush of rising debt.


Often, when a couple divorces, one or both partners may discover that they’re not financially secure on their own. Many households operate on a two-earner income, so when the two earners separate, they may quickly find that they can’t afford their mortgage by themselves.

Additionally, divorce can come with high bills of its own. Not only can you rack up high legal expenses, but you may also end up having to pay for alimony and/or child support afterwards. Throw all these factors together, and it’s little wonder that many new divorcees need to file for bankruptcy.

Medical Debt

According to a study published by the American Journal of Public Health, 58.5% of all bankruptcies filed between 2013 and 2016 were the result of medical debt. Obviously, this isn’t a factor that’s within a person’s control. When a life-altering illness or serious injury occurs in the family, you don’t have much choice other than to pay for treatment—regardless of the cost. You put one medical bill after another onto credit cards or take out loans to cover what isn’t handled by your insurance. But eventually those debts catch up with you.

With the rising costs of health care, it’s little wonder that this is the leading cause of bankruptcy in America. And, no matter how financially responsible you may be, it’s still possible that you’ll find yourself facing unexpected and astronomical medical expenses that lead you to bankruptcy.

If you’ve found yourself struggling to manage your debt and it’s beginning to feel like you’ll never dig your way out, contact the Law Offices of Winter-Black & Baker. Whatever the cause of your debt, we’ll help you to file the right type of bankruptcy to settle it and manage it appropriately so that you can breathe freely once again. Give us a call today at 217-235-3400 and schedule an appointment with a

lawyer for bankruptcy in Mattoon, IL.