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Top reason people file Chapter 7 bankruptcy

There are many reasons why one might pursue a bankruptcy filing. Financial struggles can strike anyone due to employment loss, overspending, emergencies and/or health issues -- among others. It is, however, believed that medical debt is the top reason people in Kentucky and elsewhere pursue Chapter 7 bankruptcy filings.

According to a report from the Kaiser Family Foundation, in 2014, 40 percent of Americans went into debt because of a medical problem. Many people with medical debt do have health insurance, but the coverage simply is not enough, especially in cases involving severe injury or illness. It is believed that 20 percent of insured Americans under the age of 65 struggle to pay their medical bills. Many of them use all of the savings to cover the costs, and 42 percent of them have to take on extra jobs to make ends meet.

While bankruptcy is certainly no one's first option, for some it is the best option. How does one know if it is the right avenue for him or her? This is where an experienced attorney can help.

Not all Kentucky residents who are struggling economically will qualify for a Chapter 7 filing. In order to find out if one does, an attorney can review one's financial situation and explain all available debt relief options, including both the positive and negative points of each. Then one will have the ability to make an informed decision regarding the best way to handle his or her medical and other debts. If bankruptcy is the route that is chosen, the attorney can assist with filing the petition and seeing it through to a successful completion.

Source: USA Today, "This is the No. 1 reason Americans file for bankruptcy", Maurie Backman, May 5, 2017

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