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The Primary Reason People File for Bankruptcy May Surprise You

betteroffdeadWhen someone files for bankruptcy, the finger is often pointed towards the person’s spending habits. However, the primary reason why so many Americans end up in debt has very little to do with their temptation to spend money. The major culprit in bankruptcy filings? Medical debt.

Over a quarter of Americans have difficulty paying their medical bills, and that includes individuals that have insurance, employer-based or otherwise. In 2014, more than thirty percent of Americans put themselves into deep debt because of a medical issue, and these debts continue to be the number source of personal bankruptcy filings.

We all know that numerous Americans struggle with paying their medical bills, but you may be surprised by the extent to which individuals with insurance barely manage to keep up. Per The New York Times, over fifteen percent of insured Americans below the age of 65 had difficulty paying their medical bills during the past year. Just over sixty percent say they’ve burned through their savings while more than forty percent are working an extra job to tackle the costs.

Reasons like these are why it’s imperative to set up an emergency fund, should your circumstances allow. A health issue can arise at any moment, and one way to be sure you’re ready for it is by setting up a budget. Cut down on costs where possible, stop eating out so often, and focus on building some savings account little by little.

This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with a Miami insurance attorney or bankruptcy attorney and receive a free consultation. We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.