While people go bankrupt for a variety of reasons, researchers found in a 2013 study that medical bills top the list of reasons why most people in the U.S. file for bankruptcy. So what should you do if you’re headed the same way?
There is no need to panic, but there is also no need to do it alone. Osmond and Cockayne Associates recommend that you find a reputable bankruptcy lawyer in West Valley or any other city, who can provide you with advice on what to do and when you should file.
So how can you prevent bankruptcy? Sometimes, the best prevention is to have the right information. Here are some of the other major reasons why many Americans file for Chapter Seven.
1. Medical Bills
According to a study conducted by Harvard University, the main reason for 62 percent of personal bankruptcy cases were medical expenses. The study also discovered that 72 percent of the people who filed for bankruptcy had some form of health insurance. Apparently, even your health insurance can’t protect you from the rising cost of medical fees.
2. Loss of Employment
About 75,114 Americans lost their jobs in January 2016 alone. That is a significantly larger number than those who lost their jobs in December 2015. When people lose their jobs, they lose their main source of income. Sometimes finding a new one takes too long, and their financial duties take a toll on most people.
3. Massive Credit Debt
Based on one study, the average U.S. citizen aged between 18 and 65 years old, carry approximately $4,717 of credit card-related debt. Another study found that the average interest on credit cards is at 15 percent. With a minimum payment of about $189, the average American needs a little over 10 years to complete $4,717 of debt.
Which came first? The divorce or the bankruptcy? For many people, it’s like the chicken or the egg question. However, based on the evidence, divorce and bankruptcy go hand in hand. This is because both partners dissolve their assets, and their legal fees eat up their funds—especially in cases that involve child custody and child support.
Seek Legal Assistance
Bankruptcy is never a good situation for anyone to be in, but when faced with such a situation, hiring a seasoned bankruptcy lawyer is the next best thing. The legal experts can help free you from more of the existing debt, and perhaps help you keep more of your properties.
Filing for Chapter 7 is never an easy thing, but you can always call on the help of a seasoned lawyer who will help you see it through without losing everything.