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What's the most predominant reason for bankruptcy filings?

If you're facing the threat of bankruptcy, you might be curious how you got into your current debt circumstances, or you might know exactly the reason why. Interestingly, the predominant reason why Americans end up filing for bankruptcy is due to medical debt. The fact is, when faced with a life-threatening medical condition, the decision to go into debt is easy to make when it's a question of life and death.

The more serious problem, however, is the fact that many Americans avoid or delay much-needed medical care because they're afraid of getting into debt. This can result in a worsening of medical conditions -- even to the point that a treatable condition becomes fatal.

According to a study published by Bankrate, a quarter of Americans say that they or a family member did not receive necessary medical care because it would cost them so much money that might result in them falling into debt problems. Another report by Kaiser Family Foundation found that 27 percent of American adults had delayed medical treatment due to financial concerns. According to that report, 23 percent bypassed a recommended treatment or test, and 21 percent forwent a prescription medication to avoid getting into debt problems.

The above statistics are troubling, to say the least. As such, all Americans are certainly encouraged to develop a health care savings fund and get sufficient medical insurance so that when a health situation arises, sufficient money is available to pay for care.

If you're so deep into debt that you can't afford medical insurance or put money aside for a medical fund -- or if you're currently underwater in medical-related debts -- you might want to consider talking to a bankruptcy attorney. A King County bankruptcy lawyer can advise you of appropriate strategies that can help you get your debt problems resolved once and for all.

Source: madison.com, "Here's How 25% of Americans Are Putting Their Health at Risk," Maurie Backman, June 11, 2017

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