The thing about the American dream is that it does not come without effort and expense. To obtain your version of this dream, you probably accrued considerable debt.
Unfortunately, a downturn in the economy or a sudden illness can erase all the work you put in to building your American dream. You may feel like a failure, but you are not. Others like you are facing the same financial situation.
Economically, the nation looks much different now than it did in the 1990s. The middle-class segment of the population has been steadily shrinking, indicating that times are hard for everyone.
According to a recent study, these are the two main reasons Americans turn to bankruptcy for economic resolution.
Loss of income
Nearly 80% of study respondents cited lost income as the reason they filed for bankruptcy. Since many people live paycheck to paycheck, lost income is usually catastrophic.
About 60% of respondents said that crippling medical debt was what led them to file for bankruptcy. With the cost of health care continuing to rise, even a minor injury can put you in debt.
Wage loss and medical debt have a unique connection. For example, if you fall seriously ill or suffer an injury, you could experience both issues simultaneously. For most people, bankruptcy is the only path to resolution and peace of mind.
Shake off the stigma
Many people believe filing for bankruptcy will cause others to think they are irresponsible money-wasters. Don’t allow the fear of this stigma to stop you from obtaining financial relief under New Jersey’s bankruptcy laws.