Bankruptcy is a state or situation in which an individual can no longer pay a debt that he or she owes. In most cases, the person owing sells his or her properties in order to pay off debts.
People go bankrupt for different reasons. For instance, huge credit card debt can lead to bankruptcy. Again, losing one’s job can cause bankruptcy. Other causes include medical expenses, separation and divorce, and so on. Furthermore, people who spend way beyond their budget can end up bankrupt.
Bankruptcy is real and it is bad, however, it can be avoided. Some of the ways it can be avoided are by having a budget that is within your means and trying not to spend above your budget. Also, you can ask help from family and friends when in need of it.
It is better to avoid and prevent bankruptcy than allowing yourself to fall into it.
Annie Watson
