Monday, December 11

Bankruptcy Stats in the US

Google+ Pinterest LinkedIn Tumblr +

Bankruptcy Stats

When you take a look at bankruptcy statistics for the United States, it becomes immediately apparent that you’re not alone if you are in a situation where you are considering filing for bankruptcy. A lot of people are in financial trouble. The good news is that, between the 12-month period spanning from March 2012 until March 2013, the amount of total bankruptcies in the United States applied for fell by 4.4%. While people may be filing for bankruptcy less than they were a year ago, that certainly doesn’t mean that everybody is in good financial shape.

Michael H. Schwartz, P.C. may be able to help you if bankruptcy seems like your only option and if you need an attorney to help you through the process. If you are considering bankruptcy, it is likely that there are some pretty common reasons behind it, and it’s certainly nothing to be ashamed of.

Medical Bills

In 2007, researchers at Harvard released a study that found that a whopping 62% of all the bankruptcies filed by individuals in the United States were the result of medical problems. This is compared to a 2001 study, when a five state survey found that only 50% of filings were the result of medical expenses. Contrast that with 1981, when only 8% of the families who filed for bankruptcy said that there was a medical reason for it, and you see how clearly a picture is being painted wherein people who suffer medical catastrophes oftentimes end up going bankrupt.

Of course, the medical bills aren’t the only problem with these situations. People who suffer a catastrophic injury or illness oftentimes find themselves unable to work, as well, compounding the problem and likely leading to them having even more reason to seek relief through bankruptcy law.

Abuse?

One of the common refrains of people who want to make bankruptcy more difficult to utilize as a strategy to rebuild one’s financial life is that people simply abuse the system. Statistics show that this is not true. Unemployment and divorce are two leading causes of bankruptcy, along with medical bills that, according to the Centers for Disease Control and Prevention, 20% of Americans are having trouble paying at present.

Getting Help

You can be absolutely certain that none of your creditors are going to be amicable to trying to help you if you tell them that you simply don’t have any money. This is why bankruptcy law exists. A skilled attorney can help you to navigate the tricky waters of bankruptcy law and to determine whether or not it is an option for you. There are different forms of bankruptcy and, if you do not qualify for a Chapter 7, you may be able to explore a Chapter 13 as an option.

Share.

About Author

Leave A Reply