Why Do People Choose Bankruptcy?  There are a variety of reasons why people choose bankruptcy. Some common ones include job loss, medical expenses, and divorce.  If you are facing one of these circumstances, it may be time to think about filing for bankruptcy. The decision should not be taken lightly, but it can make a big difference in your life.  Unaffordable Utilities  While job loss and medical debt are certainly the most common reasons why people choose bankruptcy, there are a lot of other factors that can lead to financial distress. For example, a divorce or business failure can leave people with unpaid bills and no way to pay them.  Those bills can include utility services, which may be essential to the daily lives of many people. This can include electricity, gas, water, and garbage service.  Unfortunately, those bills can become more and more difficult to pay if people struggle to make ends meet. Fortunately, filing for bankruptcy can help to prevent shutoffs from occurring.  When you file for bankruptcy, an automatic stay goes into effect that bars creditors and other entities from collecting any of the money owed to them. This includes prohibiting utilities from shutting off electricity, gas or water if you are behind on payments. However, you must provide adequate assurance to the utility company that you will continue to pay your utility bills during your bankruptcy. This can be done by providing a cash deposit, future prepayment or surety bond.  https://www.ljacobsonlaw.com/pa/harrisburg-bankruptcy-attorney/ Unaffordable Mortgages  While it is no secret that job loss and a lack of savings are the most common reasons people opt to file for bankruptcy, there are many more factors at play. An unaffordable mortgage is one of the largest culprits, but it is also a contributing factor to a number of consumer woes including increased credit card debt, lower household income and higher interest rates on existing loans.