There is sometimes this assumption about bankruptcy that it happens to people who spend recklessly and make obvious mistakes. While you can certainly find these situations, the reality is that careful people also find themselves facing financial problems and bankruptcy. It can happen to anyone.

For example, one of the top reasons for bankruptcy in the United States is having insurmountable medical bills. To a large degree, that may be out of your control. Careful drivers get in car accidents; healthy people get sick or contract diseases. Your financial plan may work perfectly until you suddenly have bills you never expected and cannot afford.

Another contributing factor is student loans. Many young people just take these in stride at 18 years old, not thinking about the long-term ramifications. Even though you can’t always discharge student loans in bankruptcy, they can certainly push you into it by putting such strain on the rest of your budget.

Job loss is another large reason for bankruptcy. People tend to plan out their budgets based on their current income. With a job, you can afford that car loan, home mortgage and monthly credit card payment with ease. When your company downsizes and terminates you even though you were a great worker, those bills are suddenly far more than you can pay. Your financial security can change in a heartbeat.

As you can see, there’s nothing reckless about bankruptcy. It really can happen to anyone, no matter how carefully they try to plan for their future. Make sure you know all of the options you have when facing financial difficulties.