Filing for bankruptcy has often been linked with a social stigma for many individuals, often causing those who are on the verge of filing, personal guilt, fear about the future, and morality struggles. But in fact, filing for bankruptcy can often be an economically wise choice for many Americans who have found themselves in financially overwhelming situations. A recent article in the Minneapolis Star-Tribune reported that over 60 percent of all Americans who file for bankruptcy have done so as a result of excessive medical bills. This comes as no surprise to anyone who has had difficulty qualifying for health insurance or was unable to afford their monthly premiums.
At my practice, I have seen a significant increase in the number of senior citizens filing for bankruptcy as a result of having to put their monthly prescriptions on credit cards. Many of these individuals are already on fixed financial budgets and Medicare/Medicaid applies only after a certain amount is covered out of pocket. The article also noted that the average Chapter 7 bankruptcy filer has an income of only $20,000 per year, which isn’t exactly a lot of money, and can easily disappear when one is faced with an unexpected financial burden. Job loss and divorce also play a huge role in bankruptcy filings. Along with medical costs, these two factors account for the vast majority (about 90 percent) of all bankruptcy filings.
The bottom line here is that bankruptcy exists to protect those who truly need its protections. Without it, the American economy would likely not flourish with as much innovation as it does today—thanks to the security that bankruptcy provides, entrepreneurs can take risks that they might not otherwise have.
Filing for bankruptcy is emotionally and mentally exhausting. The day you hire our firm, we will contact your creditors to stop the harassment. We offer free office consultations and will listen and evaluate your individual situation, taking immediate action to help get you back on your feet. If you need relief from creditors calling and are considering bankruptcy as an option contact our experienced and compassionate team of attorneys today for a free consultation at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
