Financial Fragility And Bankruptcy
Many households in America are on shaky ground financially, making the possibility of a future bankruptcy filing all too real on the horizon. With half of households in this country surviving on a month-by month basis, it wouldn’t take much to push one over the edge.
How Serious is it?
According to recent research, 12 percent of adults in the United States could not pay for an emergency expense of $400 or more without borrowing money. In roughly the last decade, there have been 10 million people who have had to file for bankruptcy due to financial distress. The general cause for this action, of course, is having more money going out than there is coming in. More specifically, though, the reasons people file for bankruptcy are varied.
Over 60 percent of those who filed for bankruptcy identified problems with their jobs as the key reason for having to file. Being laid off or fired equates to a huge financial vulnerability. Even when individuals quickly find other work, it is often for lesser pay and/or reduced benefits, and the new paycheck may not come in until after more debt has been accrued and more savings depleted.
Over half of bankruptcies are related to a medical situation, which could be a significant injury or illness, the birth of a baby, a death in the family, addiction issues, or other medical problems. In general, medical bills exceed 1,000, and families often have already mortgaged their homes in order to address piling up medical bills.
No Paid Sick Leave
Roughly 25 percent of workers in this country have no paid sick leave at their jobs. That means people forgo medical treatment, rest and recuperation, or other interventions rather than give up a day’s pay. As their health deteriorates, they are eventually forced to stay home, exacerbating the financial distress they were so anxiously trying to avoid in the first place. They sometimes require lengthy periods away from the job, ultimately even losing their job altogether. That could mean losing health insurance as well, and the horrendous cycle—illness leading to job loss and canceled insurance leading to increased medical debt with less income leading to bankruptcy.
The financial impact of supporting two households on an income that formerly supported just one can be devastating. In addition to the legal cost of the divorce itself, monthly commitments for child support and rent can lead to bankruptcy at alarming rates.
Filing for Bankruptcy
Regardless of the reasons for your financial stress, the experienced Miami bankruptcy attorneys at The Law Office of Julia Kefalinos can help to find the best bankruptcy solution for you. Take the necessary steps to get creditors off your back now. Schedule a confidential consultation in our office today.