Americans spend more in health care costs than any other nation in the world, approximately 10 times the global average, according to the World Health Organization. Therefore it should be no surprise that individuals and families in the U.S. accumulate a significant amount of medical debt. It also isn't surprising that medical debt tends to be the leading cause of personal bankruptcy.
Escondido residents who are on the verge of filing for bankruptcy have a number of concerns, including what the filing will do to a credit score, what credit will be available in the future and whether or not filing for bankruptcy will actually put a stop to all of the harassment they have been facing from creditors over debts owed. The good news is that people who are in this type of financial position will likely find that there are more pros than cons when it comes to a personal bankruptcy filing.
Escondido residents who decide that filing for bankruptcy is the right move at the time due to their financial complications will likely have many different questions about the process. For some, the main concern is what assets they will be required to give up to satisfy the debts owed. For others, the main concern will be how they will move forward in a financially responsible manner once the personal bankruptcy process is complete. But, one thing that everyone who files for bankruptcy should know is the requirements that must be met to successfully complete the bankruptcy process. One requirement is credit counseling.
Some of our readers in Escondido may have seen a recent article that detailed how the number of overall bankruptcy filings throughout the country dropped in November of this year. The figures were 7 percent lower when compared with November of last year. In all, there was a total of over 59,000 bankruptcy filings in America last month. While that figure may seem quite high, it was actually even less than the number of bankruptcy filings in the previous month. In October of this year there were over 63,000 bankruptcy filings.
There is no shortage of options for Escondido residents who find themselves facing financial hardships. Some will consider debt consolidation options, while others may try to shift credit card debt from one card to another under a favorable balance transfer offer. Many will institute a strict household budget, tamping down on expenses and savings in order to devote as much money toward paying down debt as possible. However, for some individuals and families in Escondido, the debt solution they need may come from a bankruptcy filing.
By most measures, the national economy has been improving over the last several years. The nightly news regularly provides updates regarding the unemployment rate, GDP growth and consumer spending. All indications are that the national economy has improved nicely, though slowly, from the worst of the years of the so-called "Great Recession." According to a recent report, another factor may further the opinion that the economy is improving.
Many people who decide to file for bankruptcy experience a bit of anxiety. That is natural, as filing for bankruptcy can be a major financial move. But, an Escondido resident's anxiety about a personal bankruptcy can be compounded if a creditor challenges a debt discharge.
Many Escondido residents know that filing for bankruptcy may be a useful option when financial challenges become overwhelming. Chapter 7 bankruptcy, in particular, is a good option to discharge debt for those who qualify. But, if an Escondido resident's finances aren't suddenly impacted by expenses caused by an unexpected medical condition or savings evaporating due to job loss, how does one know that the household finances are heading toward the point where considering bankruptcy might be a good idea?
Many of our Escondido readers have probably seen the now-commonplace commercials on television about services used to monitor a "credit score." As readers may know, a credit score is a distillation of a person's creditworthiness -- the person's reliability when it comes to that person's ability to repay a loan. And, as has been noted in previous posts here, there are numerous things that can either raise or lower a person's credit score.
Most Escondido residents have heard the expression "when it rains, it pours," and for those individuals and families that are experiencing financial challenges, this expression can ring especially true. Many people have trouble just making the minimum payments on liabilities such as credit card debt, car loans or mortgages. And then, on top of the stress this can cause, debtors in this position have another problem to worry about: creditor collection efforts.