Bankruptcy affects people of all walks of life

On Behalf of | May 25, 2018 | personal bankruptcy |

At one point or another, most Americans face some sort of financial hardship. Oftentimes this comes when an unexpected medical condition is suffered, a job is lost or some other major life change occurs. Although most people are aware of bankruptcy, they often neglect to consider it as a viable debt relief option. One reason is because of the stigma attached to bankruptcy. Another reason is that many believe that bankruptcy is a process that only benefits the wealthy.

The truth of the matter, though, is that most Americans who file for bankruptcy are in the middle class. In fact, the median income for those who seek personal bankruptcy is $42,000 a year, which is just slightly below the national income median. Also, those who file for bankruptcy are more likely to have a job when compared to the average employment rate of Americans as a whole. Veterans, the disabled and those between the ages of 55 and 64 also make up a significant portion of those who choose to seek this form of debt relief.

Medical bills are a major contributor to bankruptcy. One study found that medical bills were a part of 60 percent of all personal bankruptcies filed in the U.S., and 75 percent of those who filed for bankruptcy because of medical expenses actually had medical insurance. These individuals are oftentimes people who have saved money but are then forced to eat into those savings and even turn to credit cards to make ends meet. This is unacceptable, which is why bankruptcy is available to give them the fresh financial start they deserve.

As one can see, financial difficulties can affect people of all walks of life. Because it is so common and because bankruptcy can provide significant debt relief, those struggling to make ends meet should consider discussing their situation with an attorney who is experienced in handling bankruptcy cases. After all, a new beginning could be just around the corner.

Call Now To Schedule an Appointment