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Filing Bankruptcy: More Common Than You Might Think

Filing Bankruptcy: More Common Than You Might Think

People that are considering filing for bankruptcy often feel alone and isolated, but what they don’t realize is that bankruptcy may be more common than you might think. Bankruptcy can seem overwhelming and intimidating, particularly if you don’t know anyone else who has been through the process. Even if you don’t personally know of anyone who has filed, you should know that people of all income levels, of all ages, and of any walk of life could find themselves in a desperate financial situation.

 

Bankruptcy Isn’t Uncommon

 

Although filing for bankruptcy can provide invaluable relief for those facing overwhelming amounts of debt, it is not a decision that should be taken lightly. Because of this, many people considering bankruptcy find reassurance for their decision in knowing that it is happening more than they think. If you are struggling financially, know that you are not alone, and you are not the only one thinking about filing for bankruptcy.

 

Bankruptcy Statistics

 

Numbers

 

  • The number of bankruptcy filings reached its highest numbers in 2005 with over 2 million cases reported.
  • In 2018, there were over 770,000 bankruptcy filings
  • The state of California has the highest number of bankruptcy filings
  • Chapter 7 is the most filed type of bankruptcy

 

Who Files For Bankruptcy?

 

  • The majority (97%) of bankruptcies are filed by consumers, not by businesses
  • On average, filers are married, make less than $30,000 annually, and have a high school diploma
  • 73% of those filing are employed or self-employed
  • Approximately 8% of filers are over the age of 65, 30% are between 34-44 years old, and 19% are 34 years old or younger
  • About 8% of filers have filed before and account for approximately 16% of the total bankruptcy cases

 

What Factors Lead To Bankruptcy?

 

  • Medical debt is the most commonly cited cause for bankruptcy
  • Other commonly reported causes are job loss, reduced income, credit card debt, divorce, and unexpected expenses

 

Why Should You Consider Filing For Bankruptcy?

 

If you are in a difficult financial situation and are considering the option of filing for bankruptcy, start by talking to a bankruptcy attorney with detailed knowledge of bankruptcy law. A bankruptcy lawyer is best equipped to help you determine if you qualify for bankruptcy and if you will benefit from it, but their services will also ensure that everything is filed correctly and increase the possibility of a successful outcome.

 

To help you decide if you should take the first step in contacting a bankruptcy attorney, here are a few questions to help you assess your financial situation:

 

  • Are you only able to make minimum payments on your credit cards?
  • Are bill collectors taking action against you or are you receiving harassing phone calls for unpaid debts?
  • Do you have to use credit cards to pay for living expenses and necessities?
  • Are you unsure how much total debt you have?
  • Does your financial situation feel out of control or overwhelming?
  • Are you unable to make payments on loans or bills?

 

If you have answered yes to more than one of these questions, contact Fair Fee Legal Services today at (702) 703-3333 for a free consultation.

 

Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101
Las Vegas, Nevada 89123
702-703-3333