If like many people in North Carolina, you are struggling to pay your bills, you may be wondering about bankruptcy and what drives people to file for it. According to the Huffington Post, more than 1.5 million Americans file for bankruptcy each year and their reasons for doing so are likely due a number of contributing factors.
While the number of Americans without health insurance coverage dropped drastically since the Affordable Care Act was enacted, many people in North Carolina still find themselves faced with mounting medical debt even with insurance. According to the New York Times, there has been a large shift in recent years in the types of plans offered by insurers. While more preventative services are covered, provider networks are shrinking and plans with high out-of-pocket deductibles are on the rise. This can result in annual costs in the thousands of dollars, which spells trouble for many households with little or no savings.
Under some circumstances, yes, you may be able to get financing for a new car prior to your bankruptcy being discharged. While the whole point of filing for bankruptcy is to emerge debt free, having a car is a necessity for most people. Like many other North Carolinians, you likely rely on your car to take you to work. Your income from that job is what you need to make monthly payments under your repayment plan. Therefore, if your car dies and you have no other means of travel, the court may allow you to apply for a loan to obtain a new vehicle.
Most people know that debts such as credit cards and loans can affect their credit score. However, many North Carolina patients may not be aware that any unpaid medical bills can be reported to a collection agency and also end up on their credit report.