Data Shows the Types of Household Debt Contributing to Bankruptcies in 2024

Burdensome debt is a reality for many American households. This is particularly true in Georgia, which has had one of the five highest bankruptcy rates in the United States over the past couple of years. Several types of household debt impose financial pressure on individuals and families. Understanding the specific obligations that threaten your well-being, and the ways that they can be relieved, will help you and your attorney develop a strategy for dealing with the situation.  

Some of the most common forms of household debt according to a 2024 report include the following: 

• Credit card balances — Collectively, Americans owe more than $1 trillion to credit-card providers. Rising interest rates, strict penalties and the convenience of plastic purchases mean that many people carry high balances from month to month. If you are trapped in a cycle of credit card debt, it is important to know that these obligations can be discharged through Chapter 7 bankruptcy. 
• Medical bills — Healthcare costs can escalate quickly, even for those with insurance. Unplanned medical expenses—such as bills for emergency room visits, surgeries and specialized treatments—often trigger unmanageable debt.  Discussing your situation with a knowledgeable bankruptcy lawyer will help you determine if filing for relief under Chapter 7 is a viable option. 
• Student loan debt — Millions of people struggle with student loan debt, even well into middle age. Although federal loan relief initiatives ease the burden on some borrowers, those without this assistance often face long-term repayment plans that hamper their ability to save, buy homes or invest. Student loans generally cannot be discharged through a Chapter 7 proceeding, but your attorney can advise if you might qualify for relief by demonstrating undue hardship. 

For those overwhelmed by debt, bankruptcy might provide a lasting solution. Consulting with a knowledgeable bankruptcy attorney can help individuals assess whether bankruptcy is the right choice for their specific circumstances. Addressing debt issues sooner rather than later, whether through debt restructuring, negotiation or bankruptcy, can relieve your stress and pave the way toward financial recovery.

 At Jeff Field & Associates, we represent Georgia residents in Chapter 7 proceedings and other types of bankruptcy matters. To learn about your options, please call 404-381-1278 or contact us online. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.