3 Main Reasons Americans Are Filing Bankruptcy by chrisharmen


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									        3 Main Reasons Americans Are Filing Bankruptcy
Many Americans mistakenly assume that people who use bankruptcy lawyers to avoid debts are
doing so simply because they've had too much fun with their credit cards. However, avoiding
credit card debt is actually a very small reason that Americans have for filing bankruptcy. If you're
curious about alternative reasons people are filing bankruptcy, here are three.

#1 Reason For Filing Bankruptcy: Medical Expenses

Medical expenses are the top reason Americans are going bankrupt and it's expected that nearly
60% of bankruptcies happen because of unavoidable, overwhelming medical debt. Many people
mistakenly believe that it's only those without health insurance who have excessive medical debt,
and while the uninsured might be a part of the problem, it isn't just people without insurance that
see bankruptcies as their only option.

One catastrophic illness or injury could cost a patient hundreds of thousands of dollars, which
could wipe out a person's savings account in just a few weeks. Insurance co-pays, co-insurance
costs and high deductibles, coupled with a long-term healthcare need means that someone
without any additional debt could be struggling to keep up with payments after they're healthy

#2 Reason For Filing: Job Loss

The second main reason Americans are struggling to keep with their debt is the economy. Many
people, even those who assumed that they had a steady, stable job, have been saddled with a
job loss. In years past, when the economy was on an uptake, it might have been easier to find a
replacement job, but now, many people are relying on meager unemployment benefits in order to
stay afloat financially. However, these benefits don't last forever, and some people struggle to
find a job before the unemployment benefits stop.

#3 Reason For Filing: Unexpected Expenses Due To Act Of Nature

Yet another reason people are forced to call bankruptcy lawyers is an act of nature. From
hurricanes, to tornados, to fires, these acts of nature can cause severe devastation. If you're not
properly insured, you could be forced to pay to rebuild your life entirely by yourself. One way to
protect yourself is to contact a qualified insurance agent and go over disaster scenarios for your
home and your vehicle. If you're a renter, there's no reason not to have renter's insurance. This
coverage is often available from the same company as your vehicle insurance and can cost as
little as $5 a month. Also, if you drive a newer car, make sure your car coverage offers gap
coverage. This insurance will cover the depreciation difference, ensuring you can pay off your car
if it's ever totaled in an accident.

Most people don't take bankruptcies lightly. It's often a last resort decision and many people
agonize over the decision before deciding to file. However, some of the situations that lead to
filing in the first place, such as a large medical debt, a job loss and an unexpected expense due
to an act of nature are unavoidable. Before ruling it out, consider calling bankruptcy lawyers and
get their opinion on your situation.

If you're facing bankruptcy in Hawaii (http://www.debtfreehawaii.com/services/), Blake Goodman
can help. Goodman is a CPA and one of the Hawaii bankruptcy lawyers with the experience to
help clients in a number of financial situations, including filing bankruptcy in Hawaii. To see the
services Goodman offers, please visit http://www.debtfreehawaii.com/.

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