Why Americans are Filing For Bankruptcy at High Rates

| June 27, 2017

Filing for personal bankruptcy is not an easy decision. While credit card balances that have gone out of control can lead to bankruptcy, the number one reason Americans are filing for bankruptcy today is because of medical debt. This type of debt is unavoidable at times. If you are injured and you aren’t able to work because of it, this only adds to your problem.

When Medical Costs Get Out of Controlyoung couple debating bankruptcy

If you are injured and you have minimal health insurance coverage, you will start to see the medical bills piling up. The bills can quickly get out of control as you try to keep up with payments. The good news is, medical bills are unsecured debt and they can be taken care of by filing for personal bankruptcy. In a system where medical care costs keep rising, a medical emergency can leave you with no other solution but to file for bankruptcy.

Why Debt Needs to Be Managed

When you are only able to pay the minimum payments for your credit cards and paying off the minimum each month to medical bills, your overall debt will never decrease. This leads to extensive financial problems in your future, and the inability to ever really get ahead. While you can’t discharge back taxes or student loan debt through a personal bankruptcy, most other unsecured debt can be wiped out if you file for bankruptcy.

If you find yourself struggling to make payments, you need to make a decision. With the help of one of the bankruptcy attorneys in the Athens area, you can go through your debt to determine what debt would be discharged. You’ll take a hard look at your debt, your current income, and your ability to pay off your debt in the future. If you already have a low credit score and you aren’t able to find your way out, you may benefit from filing for personal bankruptcy. While there will be a time period when your credit will remain low, you will be on your way to repairing your credit when you file for bankruptcy.

If you are buried under a mountain of rising debt, it’s time to call your Athens lawyers at Morgan & Morgan at (706) 468-3364 to see if filing for bankruptcy is right for you.

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