It’s normal to feel like you are all alone when you are struggling financially. It’s not something that people talk about a lot. The reality is, a huge number of individuals, couples and families struggle financially. Bankruptcy can be a great tool to protect you if you are in a difficult financial situation.
Here are some facts about bankruptcy:
- In 2020, there were 529,068 bankruptcy filings in the United States, a decrease of 29% from the previous year. This is the lowest number of bankruptcy filings since 1986.
- The leading cause of bankruptcy is medical debt. According to a study by the American Journal of Public Health, medical bills were a factor in 62% of all bankruptcies in the United States.
- Other common causes of bankruptcy include job loss, divorce, and credit card debt.
- In Minnesota, there were 13,715 bankruptcy filings in 2020, a decrease of 25% from the previous year. Chapter 7 bankruptcy was the most common type of bankruptcy filed, accounting for 75% of all filings.
- Bankruptcy can provide relief from overwhelming debt and protect your assets from creditors. It can also provide a fresh start and allow you to rebuild your credit.
- Bankruptcy can have a negative impact on your credit score, but the impact can vary depending on your individual situation. It’s important to work with an experienced bankruptcy attorney to understand how bankruptcy will impact your credit and how to start rebuilding your credit after bankruptcy.
- Bankruptcy is a legal process that involves filing a petition with the bankruptcy court, attending a meeting of creditors, and completing a financial management course. It’s important to work with an experienced bankruptcy attorney who can guide you through the process and help you achieve the best possible outcome.
These are just a few facts about bankruptcy. If you’re struggling with overwhelming debt, our experienced attorneys can help you understand your options and guide you through the bankruptcy process. Contact us today to learn more about your options.