Debt.org reports these amounts as the average debt held by each group:
Gen Z: $16,043
Gen X: $140,643
Since the 1980s, the debt-to-income ratio has grown steadily. The average American household is almost $150,000 in the hole. By comparison, just twenty years ago, that number was only $50,000. The National Institute of Health reports that people who claim to have high amounts of debt have higher perceived stress and depression, higher blood pressure, and worse overall health. Sadly, medical debt is one of the greatest burdens many of our bankruptcy clients face. United Healthcare reports that the average cost of an ER visit for the uninsured in 2021 was $2,200. Additionally, fighting about finances is the #2 cause of divorce in the US, according to Ramsey Solutions. In a nutshell, Americans are more in debt than ever, and that financial stress is negatively impacting their physical and mental health plus their relationships and families.
Is Bankruptcy an Option to Relieve your Financial Stress?
To file for bankruptcy protection, there is no set amount of money you have to owe. Depending on which chapter of bankruptcy that you file, you can include credit card debt, loans, medical bills, and back rent or mortgage payments (as well as other types of debts). Certain debt burdens, however, cannot be relieved through bankruptcy. If you’re located in St. Louis, feel free to contact our bankruptcy law firm to see if your debts qualify for bankruptcy.
Types of Consumer Bankruptcies
There are two types of bankruptcy protection available to consumers: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is the most popular and discharges your qualifying debts, as mentioned above. What does “discharge” mean? Simply speaking, it wipes out those debts, so you are no longer responsible for them. Chapter 13 is a little bit different. With a Chapter 13 bankruptcy, you'll make a debt repayment plan through the court.
Get a Consultation from a St. Louis Bankruptcy Lawyer Now
“Andrew was extremely helpful throughout the entire process. Always answered all of my questions and kept me up to date on exactly what was happening,” wrote AKS Law client Kendra. With years of experience as a St. Louis bankruptcy attorney, AKS Law is eager to answer all of your questions and advise you as to whether your debts qualify for a bankruptcy discharge. Find out today by calling us at 314-740-2989.