Filing for bankruptcy is a decision that needs to be made after weighing all your options. However, if you have lost your job, experienced unexpected medical expenses or suffered a significant unexpected loss, you may want to call Church and Korhonen, PC today to see if you should file for bankruptcy.
#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 again.
#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. A flood, hurricane, tornado or fires can cause severe devastation and ruin your financial stability. If you’re not properly insured, you could be forced to pay to rebuild your life entirely by yourself.
These are the top three reasons over 1,185,238 people filed for bankruptcy last year. If you are experiencing any of these catastrophes, and live in the Upper Peninsula of Michigan, call and speak with a Church and Korhonen attorney today. Hope and help may be a phone call away.