66.5% of All Bankruptcies Are Tied to Medical Issues - Walnut Creek Bankruptcy Attorney

A new study from academic researchers found that 66.5 percent of all bankruptcies were tied to medical issues —either because of high costs for care or time out of work. An estimated 530,000 families turn to bankruptcy each year because of medical issues and bills, the research found. Other reasons include unaffordable mortgages or foreclosure, at 45%; followed by spending or living beyond one’s means, 44.4%; providing help to friends or relatives, 28.4%; student loans, 25.4%; or divorce or separation, 24.4%. Chapter 13 is a type of bankruptcy that allows for the reorganization of debts for individuals and small businesses. Corporations cannot file for Chapter 13 bankruptcy relief. In most cases, individuals and couples with some source of regular income are allowed to keep their property and pay a percentage of their debts over time. The most important benefit is that it often protects a home from foreclosure or a car from repossession. In addition, small busin