For many people, the word "bankruptcy" elicits feelings of fear and uncertainty; for others, the idea of filing a bankruptcy petition is foreign and far-removed. Did you know that approximately 1.5 million people file for bankruptcy every year in the United States? That's more than the entire population of Delaware, and with about 300 million people living in the United States, 1.5 million is considerable portion of the national population.
You are not alone. Financial hardship is never a good thing, but those who are considering bankruptcy or a similar alternative can find some comfort in the fact that many other families and individuals are facing the same problem.
The Average Bankruptcy Petitioner is the Average American
A study conducted by the Institute for Financial Literacy revealed that 73% of bankruptcy petitioners are employed. 27% of these people make more than $30,000 every year and the vast majority (94%) graduated from high school. Approximately 30% of individuals who file for bankruptcy are between 35 and 55 years old.
What does this mean? Most bankruptcy filers fall into the "average American citizen" category. In fact, even sports celebrities and movie stars file for bankruptcy. People with advanced college degrees and high-paying jobs are not immune to financial hardship either.
Why do people file for bankruptcy?
Everyone is different, and so is every bankruptcy case. Depending on the unique circumstances a particular case, one or more of the following factors can lead to bankruptcy:
- Job Loss
- Medical Bills
- Foreclosure
- Creditor harassment
- Credit Card Bills
When is bankruptcy the right choice?
Bankruptcy laws are designed to give debtors a fresh start, free of overwhelming financial obligations. Through bankruptcy, you can find peace of mind knowing that you are no longer under the burden of unmanageable debt. If you are having trouble meeting your financial obligations, bankruptcy may be the answer. Bankruptcy isn't right for everyone, but it has helped millions of Americans start the path toward financial security.
To see if bankruptcy is right for you, speak with a bankruptcy lawyer from San Diego Legal Pros.