Macco Law Group, LLP

What causes Americans to pursue a bankruptcy filing?

What causes Americans to pursue a bankruptcy filing?

Most of our readers have probably seen the most recent news about the national economy that indicates that things are looking good for the future. However, there are still plenty of people in New York who are facing financial challenges that an upswing in the economy can’t help. For many people, the main problem is debt, and excessive debt can lead individuals and families in New York to consider filing for bankruptcy. But, what type of debt is the most common cause of bankruptcy filings in America? According to a recent article, the answer is medical debt.

The recent article noted that, according to one organization that keeps track of financial issues, more than 25 percent of adults in America face problems when it comes to paying down medical debt. In one year alone, 2014, an estimated 40 percent of people in America accumulated some amount of debt due to medical treatment.

The article also notes that, fortunately, many people have funds in savings that they can use to pay down medical debt when the need arises. However, even for those who might have a bit of money put aside for emergencies, what happens when the medical expenses are so overwhelming that the savings run dry and people need to turn to other forms of payment, like credit cards?

We all face unexpected life changes from time to time. When those issues result in a build-up of debt, New York residents may see the benefits of considering bankruptcy. With a bankruptcy filing, our readers could find the debt relief they are looking for.

Source: Fox Business, “This Is the No. 1 Reason Americans File for Bankruptcy,” Maurie Backman, May 1, 2017