Experienced attorneys dedicated to providing effective, economic legal service to the community.

What is the most common reason for bankruptcy? 

On Behalf of | Sep 13, 2021 | Bankruptcy | 0 comments

Among many myths surrounding bankruptcy is the idea that those who end up filing have somehow caused their own financial problems or made avoidable mistakes that lead to bankruptcy. That may sometimes happen, but the reality is that the vast majority of bankruptcy cases have nothing to do with any mistakes and are not the fault of those in financial distress.

For instance, the most common reason for bankruptcy is medical debt. People wind up in the hospital for things they never saw coming — injuries from a car accident, for instance, or a disease that developed over time — and they simply can’t afford it. Many times, they have insurance, but it does not cover everything they need to pay. In the American healthcare system, as it is currently designed, people who spend even a few days in the hospital may get out with debt that is entirely unaffordable for them. 

What should you do if your debts are overwhelming?

Avoiding this type of debt is also impossible, however. When you need medical care to save your life or the life of a loved one, you’re going to get it. The last thing you’re worried about is the cost. You do what it takes to get the assistance you need, benefiting from advances in modern technology. 

So what should you do after the fact? It’s easy to put off the financial side when you’re focused on health. You can just tell yourself that you’ll handle it in the months and years to come. But what about when that time arrives? This is when it’s so important to understand bankruptcy and all of the financial options you have to find relief.