The on-going global economic downturn has brought difficult financial times for businesses and individuals across the country, with many struggling to make ends meet and sinking further and further into debt.
Encouragingly, the latest figures from the American Bankruptcy Institute have shown that consumer bankruptcy filings have fallen by 11% compared to May 2012, from 104,197 to 92,413. However, these figures suggest that too many people are still living with the stress of unmanageable debt.
For many, the need to make a bankruptcy filing isn’t the result of over-spending or living a reckless lifestyle, but is caused by unexpected external factors that are out with the individual’s control, such as a sudden job loss or prolonged period of illness.
There is also a link between bankruptcy and people struggling with addiction, such as an addiction to alcohol. For someone with a serious alcohol addiction, finding the money to fund that addiction can become an overwhelming priority, often to the detriment of their overall financial position. In order to buy alcohol bills don’t get paid, credit cards are maxed out, money is borrowed repeatedly and debt begins to pile up. This in turn can trigger even greater drinking to deal with the stress and worry of debt. The best way out of this downward spiral is to tackle both aspects of the problem together. Specialist advice and treatment is available to deal with alcohol addiction in Missouri and Florida, and other states across America, through sites like drugabuse.com. An experienced bankruptcy Attorney will be able to help resolve the financial issues, bringing peace of mind and a financial plan for the way forward.
Link between cancer and bankruptcy
An interesting study by researchers at Fred Hutchinson Cancer Research Center looked in detail at the impact illness can have on the incidence of bankruptcy by focusing on people who were suffering from cancer. The researchers found that people who had received a cancer diagnosis were two-and-a-half times more likely to declare bankruptcy than people who didn’t have cancer.
“This study found strong evidence of a link between cancer diagnosis and increased risk of bankruptcy,” the authors wrote. “Although the risk of bankruptcy for cancer patients is relatively low in absolute terms, bankruptcy represents an extreme manifestation of what is probably a larger picture of economic hardship for cancer patients. Our study thus raises important questions about the factors underlying the relationship between cancer and financial hardship.”
According to the researchers, because a cancer diagnosis is normally sudden and unexpected, the likelihood of bankruptcy will be affected by the level of existing debt before the diagnosis, and other matters such as whether the patient has health and disability insurance, whether there are dependent children, and whether other family members are bringing in an income.
The study also found that younger cancer sufferers were between two and five times more likely to be bankrupt than older patients. According to the authors, this was likely to be because their diagnosis came at a time when their debt to income ratios are at their highest because, for example, they are paying off a student loan or in the process of buying a house.
“All working-age people who develop cancer face loss of income and, in many cases, loss of employer-sponsored insurance, both of which can be devastating for households in which the patient is the primary wage earner,” the authors explained.
Bankruptcy and divorce
There is also a strong link between divorce and the incidence of bankruptcy. Ending a relationship can be a very expensive business; not only are there legal fees to pay for, but suddenly all the normal costs associated with running a house are doubled. There are now two rents or mortgages to pay and two sets of utilities. Unfortunately, income doesn’t usually increase at the same time to help meet all these expenses.
Financial matters are one of the biggest causes of marital disputes, and if serious enough, these disputes can eventually result in divorce. If a couple is divorcing because of financial disagreements, it is often the case that the couple has already found themselves in financial difficulties, and will not be in a strong financial position to be able to move on post-divorce. This increases the likelihood of debt problems getting out of control and a higher risk of bankruptcy.
Bankruptcy can offer a way out of seemingly insurmountable financial difficulties, and give you the chance to regain your financial freedom. Contact an experienced Port Charlotte bankruptcy Attorney today for advice on the best way forward for you. This article was written by Melissa Hathaway.
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