Traditionally, the most common cause of bankruptcy was an unexpected health or medical issue. But the downturn in the economy in recent years has caused a number of other factors to lead people to bankruptcy.
Those factors include the loss of a job, the decrease in real estate prices (which has especially affected those with real estate property), the decrease in value in investment accounts, and an unexpected financial expense on top of all of the tight budgets that many people face because they have not had raises at their place of employment.
Despite these diverse circumstances, the result is common: a serious financial hardship that seems to be getting worse before it gets better. For this reason, the state of mind of people who file for bankruptcy is often similar, with a similar mix of emotions.
When considering bankruptcy, people’s emotions run high. They may feel hopeless, overwhelmed, anxious, embarrassed, confused or frustrated. No one wants to file for bankruptcy; they file for bankruptcy because it is the last available option before their financial crisis gets worse.
As a Minnesota bankruptcy attorney, I hear many sad stories and observe many good people in very challenging situations. One meaningful aspect of working as a Minnesota bankruptcy attorney is seeing people’s dire circumstances turn around, helping them get back on their feet, and seeing them re-engage in their lives with a new hope for the future.