The Leading Causes of Bankruptcy for Ohio Residents
October 1, 2015
Are you falling behind on your monthly bills and not sure what your best options are? You’ve probably seen those commercials on tv talking about bankruptcy solutions and wondered if it is the right answer to your financial woes. Is there a way to quickly resolve your debt problems so you can start over? Is your debt situation enough that you should file bankruptcy?
Check out this list of the leading causes of Bankruptcy in the United States and take a personal audit of your financial situation. Do you find many of these factors present in your life? If so, you should consider speaking with a knowledgeable bankruptcy attorney to learn what your legal options are.
Leading Causes of Bankruptcy in the U.S.
- Medical Expenses- Medical expenses are the number one contributing factor leading to Bankruptcy across Ohio and the rest of the United States. Statistics show that anywhere from 40%-65% of all bankruptcies filed are due primarily to overwhelming medical expenses. Interestingly though, most of these individuals also report having medical insurance coverage.
- Divorce- Going through a divorce is a rather costly event in individuals’ lives. Legal fees, child support, and spousal support payments, combined with the burden of paying bills on only one income, are another leading cause for bankruptcies throughout Ohio. Many find that they simply can’t keep up with the financial demands that result from a divorce, and bankruptcy is the best option.
- Uncontrolled Spending- Credit cards, late mortgage payments, high car payments, and poor budgeting lead people to spend more money than they have available to pay for the things they truly need. In all, American households on average owe more than $15,000 in credit card debt and more than $150,000 in mortgage loans. These figures alone require hefty payments each month for individuals struggling to pay their bills each month.
- Job loss- Whether because of termination, lay off, or resignation, unemployment can have a devastating effect on individual and family finances. Those who aren’t working often must pay out-of-pocket for insurance or medical bills, fall behind on utilities, and rely on credit cards for daily living expenses.
- Lack of Financial Planning- Individuals who don’t adequately plan for budgeting spending, saving, retirement, or emergency funds often find themselves in the difficult position of considering bankruptcy when their debts become more than they can manage.
- Student Loans- Although overwhelming student loans do not qualify for debt elimination during bankruptcy, they may be able to be consolidated with lower payments that are more manageable.
- Unexpected Disasters- Unexpected events like house fires, floods, or tornados -all of which are common in northwest Ohio- can wipe out families financially if they don’t have the proper homeowners or property insurance.
Are you considering filing for Bankrupty here in Northwest Ohio? Conveniently located in downtown Toledo, Michael E. Bryant has the wisdom and experience needed to thoroughly and successfully guide you through the process from start to finish. One simple phone call to his law office today at 419-243-3922 could help you gain the new financial freedom you need.