A Rise in Filing Bankruptcy – What Does It Mean for You?
If you’re feeling the pressure of rising debt, you’re not imagining things. More people are filing bankruptcy in the US – up 13% from last year.
People across the country are finding themselves overwhelmed by financial stress, and many are turning to bankruptcy for relief.
As a bankruptcy lawyer, I see the reasons behind these filings every day. They go far beyond basic spending issues. So, why exactly are more people filing for bankruptcy right now? Let’s break it down.
Inflation and the Rising Cost of Living
Groceries cost more. Rent is up. Gas prices are unpredictable. Everyday essentials have gotten significantly more expensive, and for many people, wages haven’t kept up.
Even folks who were doing okay financially a few years ago are now using credit cards just to make ends meet. Over time, that debt adds up fast – and bankruptcy becomes a way out of the cycle.
High Interest Rates
The Federal Reserve has raised interest rates a few times to fight inflation, but that’s made borrowing more expensive. So if you’re carrying credit card debt or certain personal loans, your monthly payments may have risen – even if your monthly spending hasn’t changed.
For people already living paycheck to paycheck, these rising rates can make debt spiral out of control.
Medical Debt Is Still a Major Problem
Medical bills remain one of the top reasons people file for bankruptcy. Even with insurance, the high deductibles, surprise bills, and uncovered treatments can create massive debt fast. One emergency room visit or unexpected surgery can leave you thousands of dollars in the hole.
We’ve written a lot about medical debt. If it’s pushing you to consider bankruptcy, we offer a free consultation to help you figure out your options.
Job Loss and Reduced Income
While unemployment numbers are relatively low, many people are working part-time or gig jobs that don’t offer stability or benefits. Others have seen hours cut or lost income from trade instability.
Losing even a small portion of your income can be devastating when bills keep piling up.
End of Pandemic-Era Protections
During the pandemic, many people relied on stimulus checks, paused student loan payments, and eviction moratoriums to stay afloat. Now that those protections have ended, some families are facing a financial wall that feels insurmountable.
For some, bankruptcy is the only option left to deal with the debt that built up during those years.
So, What Does This Rise in Filing Bankruptcy Mean for You?
If you’re feeling overwhelmed by debt, you’re not alone—and you’re not a failure. Bankruptcy filings may be rising, but that doesn’t mean it’s the end of the road.
In fact, for many people, bankruptcy is the beginning of a new chapter. It offers legal protection, relief from harassing creditors, and the chance to rebuild.
At our Memphis bankruptcy firm, we focus on your long-term success and happiness. We offer free resources about life after bankruptcy and how to rebuild your credit. We want you to leave this process better off than before, at no extra cost.
Considering Filing Bankruptcy? Don’t Go It Alone.
Whether you’re dealing with credit card debt, medical bills, foreclosure, or wage garnishment, there are solutions available. You don’t have to live in a cycle of debt forever. You can have a fresh start and all the help to get you there.
If you have questions or concerns about filing bankruptcy, don’t wait to get some answers. I can help you understand your rights, explore your options, and decide on the path that’s best for your future.
If you’re struggling, you’re not alone – and you don’t have to figure it out on your own. Reach out today for a free consultation, and let’s talk about how you can get a fresh start.