A lot of people think that a lack of self-control is behind the debt crisis in this country. Yes, there are some individuals who need to learn to budget, but budgeting alone is not going to solve the real reason most people find themselves in a bad way financially. According to a recent report, health problems are responsible for a lot of consumer debt. Illinois residents who find this is true for them may be able to utilize Chapter 7 bankruptcy filings to better their situations.
Roughly two out of every three bankruptcies are said to stem from medical problems. When a person becomes sick, really sick, it is not just medical bills that are a concern. Some individuals find that they are unable to work temporarily or permanently. This results in a loss of income which makes it impossible for them to meet their financial obligations, such as mortgages, credit card debts, auto loans and other financial obligations. It also may increase their personal and medical expenses due to the loss of employer-provided insurance.
A professor at City University of New York’s Hunter College says that, unless someone is extremely well-off financially, he or she is one serious illness away from financial ruin. Look at the facts. Approximately 44 percent of Americans experienced a medical expense for which they were unprepared. Every year, 530,000 families file for bankruptcy because of health issues. Four out of every 10 Americans do not have enough money in their savings account to cover a medical bill of just a few hundred dollars, let alone one that costs thousands.
Medical and other debts stemming from health issues may be discharged in Chapter 7 bankruptcy. Illinois residents who would like to use this form of debt relief simply need to meet the income qualifications to do so. While that may make it sound like Chapter 7 is not available to many people, the truth is, more people qualify than one would think. Those who are unsure if this is an option for them can turn to legal counsel for information and guidance.