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Bankruptcy may not be your fault 

On Behalf of | Aug 9, 2023 | Chapter 7 Bankruptcy

People sometimes struggle with guilt when they’re considering bankruptcy. They believe that this is their own fault, and there are even people who refuse to file for bankruptcy – despite the fact that it would be very helpful for them – because they think the debt is their own responsibility.

You are certainly not obligated to file for bankruptcy, but it is important to break this inaccurate stigma. In most cases, bankruptcy is not the fault of the person who is filing.

Medical expenses are a major cause 

For example, one of the top reasons that people file for bankruptcy is because they have outstanding medical debt. They also have other types of debt, like credit card debt or a home mortgage. But it is the medical debt that has put them over the edge and made bankruptcy a necessity.

But how are those medical expenses incurred? It was likely completely out of their hands, as the person came down with an illness or got injured. Perhaps their child suffered from an ailment. A parent in that situation isn’t going to think about whether or not treatment for their child is affordable. They are just going to get the treatment, as expensive as it is, and then try to sort it out in the future.

That can be very difficult in the United States, as insurance often doesn’t cover all of the actual medical costs. But that too is not the fault of the person filing bankruptcy, because they were not responsible for setting up the modern healthcare system in the U.S.

Exploring your options

If you’ve been thinking about bankruptcy and you’re on the fence, you can see how helpful it may be in your situation. Make sure you know what options you have.