Are you overwhelmed by your debts? Are you struggling just to pay your monthly bills, or, even worse, juggling your accounts so you can pay the bills with your credit cards? If you are doing your best, but your debts are only growing, there is a clean way out: filing bankruptcy.
Unpaid medical bills are now the biggest cause of bankruptcy filings in the United States. According to a CNN report on bankruptcy, last year nearly 2 million people filed for bankruptcy as result of medical debt. According to the statistics, there were more bankruptcies due to health care debt than to unpaid credit card bills or mortgage debt - a significant statistic, when you consider that some filings listed as credit card debt are really for medical debt, as many people use their credit cards to settle their medical bills.
If you are trying to figure out how to deal with debts that you cannot afford to repay, it is important to not rule any options out. Whether you are considering a short sale or filing for bankruptcy, the evaluation process is the same. So you might as well look into both, before you commit to any decision. Find out about all of your options. Then narrow down which one is best for you. Bankruptcy is not for everyone. But for some homeowners, bankruptcy is the quickest and most permanent way to clear their name and get a fresh financial start.
The global financial crisis has affected nearly everyone. Even though home prices have recovered to a degree in some parts of the country, they are still down nationally by 23% from their peak in 2006. This means that more than 12 million homeowners owe more on their mortgage than what their home is worth. If you can afford your mortgage payments, you can wait it out: keep paying and hope that your home’s value will rise enough that you can sell it.
Unexpected medical bills can cause unexpected financial problems. Unlike most of your other major expenses, such as purchasing a home or a car, they are not planned for. You budget for your home or car, and make sure that you will be able to pay your bills before you commit to the purchase. In contrast, major medical treatments usually appear out of the blue: a motor vehicle accident, a cancer diagnosis, a premature baby. Medical expenses can run into the tens of thousands of dollars, or even more.