Some research has shown that medical debt is the primary reason people need to file bankruptcy. A widely cited study published in the American Journal of Public Health in 2019 estimated that about 66.5% of bankruptcies were tied to medical issues, including both medical bills and the loss of income due to illness. Other studies have reported lower percentages, but medical debt consistently ranks among the leading causes of bankruptcy filings in the U.S. The lack of universal health insuranceRead more
Rising Interest Rates and Bankruptcy
The rapid rise in interest rates is having a big impact on the financial well-being of consumers and businesses. Although a rise in interest rates is often seen as a positive economic indicator, as it can signal economic growth, it can have negative effects on people who have taken out loans or who carry a large amount of debt. Rising interest rates can lead people to need to file for bankruptcy because of the increase in monthly loan payments. InterestRead more
Why Can’t I Repay My Parents Before Filing Bankruptcy?
One of the most important powers a Chapter 7 bankruptcy trustee has is the ability to set aside or void certain transfers of property or payments of money. The trustee uses this power to recover money that can be distributed to all the debtor’s unsecured creditors. The two general situations where a trustee can set aside a transfer or payment are where the debtor sells or gives away property for less than its fair market value or where the debtorRead more
