When the topic of bankruptcy comes up, it’s not unusual to think of fiscal irresponsibility. In reality, the No. 1 reason for having to filing bankruptcy is medical debt. The truth is that the real picture of someone who has to file for bankruptcy doesn’t fit the stereotype of an overspending, n’er-do-well. It’s true that bankruptcy primarily affects lower-income Americans (those who earn $30,000 or less per year), you may be shocked to learn which professions have some of the highest rates.
Doctors Having Trouble Keeping Their Finances Straight
According to an increasing number of physicians, changes brought on by the Affordable Care Act, decreasing insurance reimbursements and rising malpractice costs are among the main reasons they’re struggling to maintain their practices. More and more doctors are being forced to file Chapter 11, shattering the notion that personal financial collapse only happens to lazy and uneducated people.
This trend has affected all areas of the medical field from orthopedic surgeons to general care practitioners. While most physicians are able to bounce back, many find bankruptcy to be the end of their career.
If there was ever any doubt about the universality of bankruptcy, this should put it to rest. The very people who make a living advising others on how to invest their money are filing for bankruptcy at higher numbers than ever before. Investment professionals are facing continued backlash from the financial crisis. They’re the victims of a financial domino effect that has also claimed many of their clients. Business has dried up for many due to uncertainty in the economy, which has created prolonged financial hardship.
The bottom line is that bankruptcy really can happen to anyone, from the richest to the poorest. If you’re facing bankruptcy, don’t be ashamed; be proactive. Talk to an experienced bankruptcy attorney who can protect your interests and guide you through the process as quickly as possible.
Joel R. Spivack, Esq. is a knowledgeable and qualified bankruptcy attorney with years of experience helping his clients through the process. Contact Mr. Spivack today for a free consultation about your personal financial situation.