Nerd Wallet recently reported on rates of personal bankruptcies across the US, both for states and counties. Among states, Ohio ranked tenth for personal bankruptcy filings, with a rate of 322 per 100,000 residents between April 2015 and March 2016 (Tennessee had the highest rate at 553 per 100,000).
There shouldn’t be a stigma attached to personal bankruptcy filings. It occurs under a variety of circumstances and involves people from various walks of life across the country every year.
Even people who are financially responsible can get blindsided by enormous expenses that they struggle to pay off.
Why might you need to file for bankruptcy?
- Medical expenses. A few years ago, CNBC pointed out how medical bills are the leading cause of bankruptcy filings. Even with health insurance coverage, medical expenses may prove overwhelming.
- Unemployment. Debts can pile up quickly after job loss. Without a salary, you struggle with rent or mortgage payments, various insurance premiums, debt repayments (such as student loans), and numerous additional expenses, including bills from medical emergencies and disasters (such as a fire or flood in your home). Even if you find another job, your debt may have piled up to such an extent that your new income can’t help you manage it.
- Changes in living situation. This is especially true for divorce or separation, which bring with them a variety of additional expenses such as child support payments, alimony, and lawyers’ fees. Other times, people may have to move to another location to start a job, and the wages they receive barely help them pay for their cost-of-living expenses. (Decades-long wage stagnation has been undermining people’s ability to cope with housing, healthcare, and education expenses.)
Don’t hesitate to contact a reputable Troy, Ohio bankruptcy attorney to further discuss your financial situation. Remember that if you’re struggling, you’re not alone; many Ohioans are in the same boat. Rather than being a stigma, personal bankruptcy could prove an effective solution for your financial difficulties.