Medical bills are one of the leading causes of bankruptcy in this country. Some people might think that this problem only affects the underinsured or uninsured. This isn't at all the case. When you are reviewing your medical insurance policy, there is one major component you should check — the catastrophic coverage out-of-pocket expenses that you have to pay before your plan picks up the charges.
Out-of-pocket medical expenses can lead to bankruptcy
Don't be afraid to file a Chapter 7 bankruptcy
A lot of people are terrified at the idea of filing for bankruptcy, for a number of reasons.
Kentucky has a higher than average personal bankruptcy rate
Although Louisville residents probably recognize that the economy across the country has been improving steadily over the last several years, the reality is that the residents of this state still struggle financially when compared to those of other states, at least if one trust recent statistics regarding bankruptcy filings.
Do I have to list everything I owe in bankruptcy?
Many families in Louisville, Kentucky choose to file a Chapter 7 bankruptcy in order to eliminate a debt that is particularly cumbersome or stressful for a family. For instance, the family may be driven to bankruptcy because of a particularly aggressive credit card company or medical bill collector which seems willing and ready to garnish wage or take other serious action.
Can tax debt be eliminated by filing bankruptcy?
For a variety of reasons, some residents of Louisville will find themselves facing trouble with tax debt. In some cases, there could have been an honest mistake or surprise with respect to what one's tax obligation was, while in other cases, back taxes could just be a symptom of one's overall poor financial health.
The problem with medical debt continues
Even with the recent healthcare reforms approaching its 10th birthday, bankruptcy due to medical debt is an ongoing problem both in the Louisville area and the rest of the country. How much of a problem medical debt is, however, is a subject that is up to some debate.
Money woes play a role in Kentucky's "stressed" status
According to a recent report, Kentucky ranks in the top 20 percent of the "most stressed" states, coming in 9th among all the states and the District of Columbia.
It may get easier to discharge student loans in bankruptcy
While a Chapter 7 bankruptcy can, for the most part, wipe out debt effectively, student loans are a well-known exception to this rule. Most Louisville residents may not even think to ask their bankruptcy attorneys about their student loans, and, if they do, the standard advice may be that it is very hard to get student loans discharged. Instead, Kentucky residents may be able to use the bankruptcy process to clear away other debts in order to focus on re-paying the student loans in full.
The ways credit card companies target "Millennials"
The generation known as "Millennials" have been a hard market for credit card companies to crack. As opposed to older generations, those born between 1981 and 2000 are relatively reluctant to use credit cards, with half of them opting to carry only one credit card. Older generations, on the other hand, are more likely to carry several credit cards.
With interest rates going up, card debt can prove hard to shake
Interest rates increased recently and may continue to rise, which means that it may be harder for people in the Louisville area to get their credit card balances paid down once they rack them up. This is because money that formerly would have gone to reduce the principal balance will now get eaten up in added interest costs.
