If you are considering filing for personal bankruptcy, you certainly have a big decision to make and you’ve probably already considered other options available. What you might not realize, however, is that personal bankruptcy cases are incredibly common and it’s possible to file for bankruptcy without ruining your entire credit score permanently. Take a look at the statistics below, and you’ll get an idea of how common this is:
97%: The percentage of bankruptcy cases in the U.S. that are personal bankruptcies. Although we typically hear about business bankruptcies more often, business bankruptcy actually only represents 3% of all bankruptcy cases.
62%: Out of all personal bankruptcies, 62% of cases are believed to stem from unpaid medical bills. According to research from Harvard University, this makes medical and healthcare expenses the most common reason why Americans struggle to pay off debts.
15,000: The estimated number of bankruptcy cases per year that are a result of student loan debts. Although medical bills are a top cause of financial disrepair, student loans are notorious for being the cause of bankruptcy for younger Americans.
#1: The spot that California holds in terms of bankruptcy cases per year. Following California, the states of Florida, Illinois, Georgia, and Ohio tend to see the most number of bankruptcy filings each year. There are many factors at play here, but it’s possible that these states see more bankruptcy lawsuits because the cost of living is high and employment isn’t always strong.
112%: If you make a purchase using a credit card instead of cash, you’re actually paying around 112% more money because of interest (and late fees, when applicable). This means that anyone struggling with their finances might feel as though they’re trapped in a vicious circle of using credit cards because they don’t have enough cash on hand, and then not having enough cash on hand because they’re paying so much on the card.
1.5 million: The number of Americans, according to U.S. bankruptcy statistics, who end up filing for bankruptcy in any given year. It’s hard to believe that so many people struggle to stay on top of their finances but if you’re one of these people, it may help to know that you’re not alone!
95%: The average success rate of a Chapter 7 bankruptcy case when assisted by an experienced bankruptcy lawyer. Those odds are pretty good!
Personal bankruptcy isn’t the perfect option for everyone, but it might just be the perfect option for you!