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Can I file for bankruptcy after overspending?

| Feb 15, 2021 | Bankruptcy

Dealing with prolonged periods of stress is not easy, and it is not uncommon for people in Virginia to turn toward consumer vices for comfort. While this is understandable and not even necessarily a bad thing, extra spending can eventually get out of control. Extra debt can further complicate stressful periods, too. It is often possible to address this financial stress through bankruptcy.

Are people really spending more?

A recent survey from MagnifyMoney found that 70% of people splurged on unnecessary or frivolous items between Jan. 2020 and Jan. 2021. On average, consumers spent $950 on their preferred vices over the entire year. Some of the more common unnecessary purchases people cited for purchasing as a way to help combat their stress levels include:

  • Alcohol
  • Cigarettes
  • Lottery tickets

Those who took on a large chunk of debt also appeared to be those who might have experienced the most stress. For example, 33% of people who were furloughed or laid off in 2020 ended up in debt because of extraneous spending habits. The survey also found that 21% of people in Generation Z and 26% of millennials also went into debt while spending on their favorite habits. This is compared with 17% of the general population.

People get into debt for all kinds of reasons, including unexpected medical bills, financial emergencies and simply spending too much. However, it does not matter how one went into debt. Bankruptcy can offer the same vital protections and relief to Virginia consumers who are struggling with a range of different types of debts.