There are many reasons that people fall into bankruptcy, and most of them don’t have anything to do with making financial mistakes. Instead, people end up filing because of job loss, wage reduction, or medical expenses, just to name a few of the most common reasons.
But what if you just decide to start a family? Could your choice to have children eventually put you in a position where you need to declare bankruptcy?
Children are expensive, and you can’t always avoid expenses
Yes, it absolutely could happen. After all, some estimates claim that it costs nearly $13,000 per year to raise a child. From infancy to 18 years old, that totals more than $233,000. And that’s just the average, so there are plenty of children who end up costing a lot more.
Not only are children expensive, but some of those costs are unavoidable. If your child needs medical care, you know you’re going to get it for them, even if you don’t have insurance or the procedure isn’t covered. Children also have school expenses. Beyond that, they may increase your housing expenses or require you to get a bigger place to live. They can also exponentially increase everyday costs like food and clothing.
If your budget was tight before you had kids, it will be even harder to meet it now. You may find out that you suddenly have overwhelming debt. If so, you need to understand all of the legal options available so that you can seek the best possible solution for yourself and your family.