The Urban Institute recently released a report that found 35 percent of Americans have debt that has gone to collections. That equates to nearly 77 million people across the country.
When your insurance fails to cover all your costs during an unexpected illness, you can quickly drown in debt. The cost of planned healthcare, such as pre-natal care and delivery of a baby can also be hard to gauge accurately.
A bankruptcy will affect your credit score, but there are things that you can do to re-establish good credit.
Credit card bills can easily mount when needed to pay for monthly expenses during a layoff or while recovering from an injury. When debt mounts and becomes overwhelming, Chapter 7 bankruptcy offers a fresh start.
In general, retirement accounts receive protections in bankruptcy, so that you will have money available to live on after you leave the workforce.