Even in Dundee, Scotland, people turn to bankruptcy for a financial fresh start.
Scottish debtors have the option of liquidation or a repayment trust, the equivalent of a Chapter 7 and Chapter 13 bankruptcy. As of April 2014 78 people, including noted soccer player Craig Beattie, have declared bankruptcy in Dundee. The debtors cover a wide range: some are young and some are old, some owe only a few thousand dollars while one claimed debts of $1.1 million.
Yvonne MacDermid, of Money Advice Scotland, stated that many people in debt suffer from mental health problems.
Why people file bankruptcy
It is a commonly-held myth that most people file bankruptcy because they are poor money managers. While that is certainly a factor in a number of filings, money management is nowhere near the top of the list. Most people file bankruptcy due to circumstances that are totally beyond their control.
Some of the leading factors driving bankruptcy filings include:
- Medical bills: Nearly sixty million people struggle with medical bills. Even for those with insurance, may plans have very high deductibles. In addition, 25 million people are skipping doses of prescription medication for financial reasons.
- Job loss: Unemployment is still extremely high; many people have been unemployed so long that they have exhausted their unemployment benefits and/or given up trying to find a job.
- Injury: If you are hurt and unable to work, your disability income may not be enough to pay the bills.
- Death in the family: If a loved one suddenly dies, the funeral costs coupled with the loss of income can be truly overwhelming.
For a free consultation with attorneys who understand that, for the most part, bankruptcy is not your fault, contact our office.