During the course of going through life, it's easy to get trapped in a cycle of down-sliding while trying to figure out your place in this world. The excitement of getting your first credit card, buying your first car, or even buying a home is something most Americans can look forward to. However, if you are financing the purchase of an expensive item through credit or otherwise, you have to maintain those payments on a timely basis. Unfortunately, things happen that can cause you to miss or stop paying your creditors and cause you to file for bankruptcy. Below is a list of reasons it's possible to mess up your credit and have to file bankruptcy.

Medical Issues

Going to the emergency room may be something you can't avoid if you get into an accident or become extremely ill. If you have no insurance, then it's possible to rack up a lot of fees for services rendered during that time. The fees can be astronomical and totally out of your budget. When this happens, it can cause your credit to decline. If it gets too bad and you can't afford to make a payment, it may be in your best interest to consider filing for bankruptcy.

Income Issues

When you first put a down payment to purchase a new home or car, you may feel solid about your income and the job that led you to afford these purchases. However, you may end up in a situation where you lose your job, your hours change, or your pay decreases. When this happens, it may be hard to continue to live the lifestyle that you are used to. The end result would be that you have to cut expenses in order to live somewhat comfortably. When cutting expenses, this could mean consolidating bills, working out lower payment arrangements, or as a final result, apply for bankruptcy.

Divorce Management

When you are in a lifetime partnership, your unit becomes as one in order to maintain a strong relationship. This means that you have combined your income to make small to major purchases. However, once you are divorcing, everything gets divided up and your lifestyle or way of living changes. It may also mean that you have to consume a portion of the debt you two created together. If your income isn't enough to cover the pending expenses, you may need to consider filing for bankruptcy.

Bankruptcy may be an option for some when the debt is so far over your ability to pay off, or you need a little relief in order to get your finances back under control. Consider speaking with a bankruptcy attorney to go over your situation and find out how you can get your finances under control once again.