Sometimes, people need a Bankruptcy Attorney in Wetumpka, AL because of reasons beyond their control. The most often cited reasons are high medical bills and credit card debt, separation and divorce, and unexpected expenses. In this article, you will learn more about some of the reasons why people file for Chapter 7 bankruptcy protection.
Bankruptcy for Medical Reasons
According to a study from Harvard University, medical bills are the most common reason for bankruptcy filing. Most debtors have health insurance, but either lost coverage or were under insured at the time of a health crisis. The study also predicted that over two million people in the US are forced into bankruptcy each year because of extremely high medical expenses; the figure includes debtors and their dependents.
Bankruptcy Due to Job Loss
In today’s poor economy, it’s not at all unusual to learn of a bankruptcy caused by unemployment. The loss of an income source can keep families from paying bills like rent, mortgages, utilities and car payments. In extreme cases, state and federal exemptions allow families to keep some assets while still getting the fresh start, protection and peace of mind offered by bankruptcy.
Chapter 7 and Credit Card Debt
High credit card debts are a leading cause of bankruptcy filings in America. As the economy continues to stagnate, underemployed or unemployed workers are often living solely off their credit cards, racking up high balances at very high rates. Late and missed payment penalties add up quickly, and can often lead to the need for bankruptcy protection.
Which State has the Most Personal Bankruptcy Filings?
The US bankruptcy laws are complex, and most debtors are ill-equipped to handle their own cases. If you need help filing for Chapter 7 or any other type of bankruptcy, call a Bankruptcy Attorney in Wetumpka, AL today.
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