People have been struggling financially since time immemorial. The precise number of people filing for bankruptcy has fluctuated over the years, but what do studies suggest today?
Is bankruptcy on the rise? If this is the case, then why is it happening?
A 10% increase between 2021-22
According to the American Bankruptcy Institute, the number of bankruptcies increased by 10% between August 2021 and the same month of 2022. Approximately 30,000 individuals filed in 2021 while this increased to over 33,000 in 2022.
There is no single cause of financial hardship, and it is often the result of numerous issues occurring at once and spiraling out of control. However, there tends to be one common denominator in the majority of bankruptcy cases, and that’s medical debt. One credible study indicates that over 40% of American households have at least one medical or dental bill that they are struggling to pay.
Your options when facing financial hardships
Being in debt can soon begin to feel overwhelming. You may be trying to figure out a way to remedy the situation, but just cannot get a break from debt collectors contacting you. There are no easy answers, but it’s certainly very important to be proactive because you do have options.
One possible way to find some breathing room is to consider filing for bankruptcy. This is a big decision that can impact your credit score, at least in the short term, so it’s vital to make an informed choice. Seeking some legal guidance will give you a better idea of whether or not bankruptcy is a feasible option for you.