An alarmingly large number of Americans have filed for bankruptcy in recent years. Below is a list of the most common sources of modern American bankruptcy.
A study conducted by Harvard University shows that 62 percent of all personal bankruptcies have resulted from medical expenses, more specifically the hundreds of thousands of dollars in medical bills from rare or serious diseases and injuries. Close to 80 percent of Americans who filed for bankruptcy because of medical expenses have medical insurance policies.
Job loss, whether from layoff, termination, or resignation, results in an obvious loss of income. The loss of income and other benefits that come with a secure job, forces the unemployed to drain their financial resources. Unfortunately, those who cannot find another form of employment in a timely manner often must file for bankruptcy.
It’s a well-known fact that many Americans struggle with managing their finances. Credit card bills, installment debt, car and other loan payments can all add up. Once the borrower is unable to make even the minimum payment on each type of debt, filing for bankruptcy is likely the only option left.
Divorce or Separation
Going through a divorce or separation is not just emotionally draining; it is often financially draining, too. Paying legal fees, dividing marital assets, deciding on child support and visitation, and maintaining two separate households puts a strain on finances for the many Americans who go through this process every year.
Emergency spending can certainly add up, but some of the most common unexpected costs are associated with loss of property, due to theft or severe weather events. Many homeowners don’t realize they need specialized coverage for earthquakes, floods, or tornadoes. If they don’t have that coverage, they are likely to lose their homes and valuables and spend quite a bit rebuilding their lives.
There are a variety of reasons Americans turn to bankruptcy, but often, common sense, sound financial planning, and preparation for the future can prevent bankruptcy from being your only available option. At Blick Law Firm, we understand that filing for bankruptcy is an emotional experience. If you are considering filing for bankruptcy, our trusted team of attorneys can help maximize your recovery and provide you with the benefits you are entitled to. Visit blicklawfirm.com to fill out an evaluation form, or call 888-973-2776 for a free consultation today!