Financial problems are difficult to deal with, for both individuals and families living in California. It can be hard to know how to address these problems, and most people will try a number of things to regain control over their finances. For many, however, the swiftest and most straightforward path toward stability is to file for bankruptcy. Knowing when to take this step can be a challenge.
Many California residents are aware of the impact that a serious illness or injury can have on an individual or a family's financial standing, up to and including prompting many to file for bankruptcy. But few understand just how this information has been gathered, and where the statistics supporting this claim come from. The following information is offered in the hopes of shining a light on the impact that medical bills have on personal bankruptcy.
The amount a consumer initially considered affordable for a mortgage payment may become unaffordable after some years. Circumstances constantly change and job loss, unexpected medical expenses or death in a family may have an adverse impact on a homeowner's financial stability. It was reported that 15 percent of homeowners are defaulting on their mortgage payments. Personal bankruptcy may prove to be a suitable remedy for some.
When people think about those with student loan debt, they naturally may imagine a young adult who just graduated from college. However, more than 16 percent of today’s outstanding college debt is associated with people over 50, research shows. College debt can be particularly detrimental to people in this age range, as they are nearing their retirement years. People who are confronted with large amounts of college debt may benefit from filing for personal bankruptcy in California.
Recent figures suggest that close to 33 percent of Americans are struggling with medical debt. In fact, well over half of all personal bankruptcy filings can be traced back to this type of debt. Even having health insurance isn't a guarantee that unpaid medical expenses won't be a burden to residents in California or anywhere else.
The change that can happen to a credit rating during times of financial stress is a concern to many people in California. In fact, for those considering the filing of a personal bankruptcy, it is often one of the top things that they worry about. However, the good news is that a credit rating can be improved relatively quickly by taking a few steps, one recent report notes.