In an age of high unemployment rates, serious credit card debt, and huge medical bills, it’s easy to see how bankruptcy is happening to good people. Many people file bankruptcy because they don’t see any way to get out of the financial black holes that they’ve found themselves in. If you are one of these people, it is possible to rebuild your credit after bankruptcy, and get back on your feet.
Causes of Bankruptcy Today
Although unemployment rates have hit a four-year low, we still have an unemployment rate of 7.6 percent in the United States, which is one contributing cause of bankruptcy today. Due to rising costs for everything from groceries to gas to education, even two-income families with children find themselves without emergency funds. Therefore, loss of a job has a much greater impact on them, and they quickly find themselves in financial trouble.
Baby Boomers are falling into serious credit card debt, and carrying larger balances than younger people, which is another cause of bankruptcy today. A significant percentage of residents over age 50 are using credit cards to pay for daily living expenses, such as housing, groceries, utilities, health care, and repairs to their cars and homes. Filing bankruptcy in this case could help fix your bad credit by erasing portions of your debt.
Over 1 million households are expected to file bankruptcy this year because of huge medical bills, especially those with chronic illnesses such as cancer. Digging out of debt can seem like an impossible task when the bills keep coming in. If you find yourself in this situation, filing Chapter 7 bankruptcy could help you take control of your life, because these debts will be discharged.
How to Fix Your Credit after Bankruptcy
If you have filed bankruptcy for any reason and are ready to rebuild your credit, BankruptcyAutoFinancing.com is here to help! An auto loan is one of the best ways to rebuild your credit. Simply fill out our secure online application, and our network of lenders get you into an affordable used car.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.