Despite the fact that many people in Ohio have at least some form of savings account, unexpected circumstances can wreak havoc on anyone's finances regardless of their preparation ahead of time. For many people, saving money is important but can also be challenging if they have other things, they would rather spend their money on that is seen as an immediate need. However, this limited mentality can put people in dire circumstances if they are slammed with an unanticipated financial obligation.
A recent study found that an alarming 66.5 percent of personal bankruptcies across the United States have been traced back to medical expenses. Of this percentage, the people filing for bankruptcy either were unprepared to pay for unexpected medical expenses that were excessive in nature or an injury they sustained in an accident left them unable to work for so long that they no longer had the resources to pay their bills. Other common reasons why people resort to bankruptcy is because they are unable to afford their home or because they have chosen to spend money that they do not have.
Filing for bankruptcy can look quite different for people depending on their circumstances, where they live and how old they are. Recently, there has been an increase in the number of personal bankruptcy filings among the elderly. Whether or not people choose to file for Chapter 7 or Chapter 13 bankruptcy is dependent on the level of risk they wish to assume and how quickly they want to get rid of their overwhelming debt.
If people are leaning toward filing for bankruptcy, they may benefit from the support of an attorney. Working with an attorney may provide them with alternative options to make their bankruptcy experience as efficient and effective as possible.
Source: Business Insider, "Staggering medical bills are the biggest driver of personal bankruptcies in the US. Here's what you need to know if you're thinking about filing for bankruptcy.," Hillary Hoffower, Jun. 25, 2019