In these difficult economic times, an injury or account may be all that’s needed to push a household’s precarious finances over the edge. The number of personal bankruptcies in the U.S. is rising, and the most common causes are unexpected medical expenses and student loans. Whether you’re trying to negotiate a personal bankruptcy or filing a workers compensation claim, having a good lawyer on your side can make all the difference.
Personal bankruptcies are growing
US bankruptcy court statistics show that upwards of 1.5 million people file for personal bankruptcy on average each year. While in 1980, 13% of all bankruptcies were claimed by businesses, by 2014, 97% of all bankruptcies were personal bankruptcies. The number of business bankruptcies had dwindled to 3% of the total number.
In 2014, the five states with the highest number of bankruptcy claims filed were, in descending order, California, Florida, Illinois, Georgia, and Ohio.
Bankruptcies are caused by medical bills and student loans
The personal bankruptcies were not caused by mindless consumerism but were due to essential expenses Ike medical bills and student loans. As many as 62% of all personal bankruptcies in the U.S. are due to medical bills, according to a study conducted recently by Harvard University. Around 15,000 bankruptcies each year are due to student loans; that amounts to at least 1% of all personal bankruptcies in the U.S.
Legal help for bankruptcy claims
The success rate for bankruptcy claims increases dramatically when the claim is filed on behalf of a client by a bankruptcy lawyer. For Chapter 7 bankruptcy claims, the success rate is over 95% with an attorney, as opposed to 60% for claims filed ?pro se? by the individual. And for Chapter 13 bankruptcy claims, the success rate is 55% for claims filed by an attorney as opposed to a meager .04% success rate for “pro se” claims.
Having an attorney on your side can help in other financial claims as well, such as disability claims, auto accident, workers compensation, personal injury accident, and more. In adverse circumstances, it helps to have a committed legal team on your side. So if you’re filing bankruptcy or any other claims, don’t go it alone. Legal help is available and can make a big difference to the outcome.
