In a recent blog post, we answered the question "Will I lose everything if I file bankruptcy?" by explaining exemptions. Exemptions protect most, if not all, of the property that most people fear they will lose if they file bankruptcy, including the family home, car and personal property. There are two sets of exemptions: state and federal.
Although it may surprise some, the top reason for filing bankruptcy isn't due to credit card debt or mortgage troubles, it's medical bills. An estimated two million people are expected to file in a recent year, largely due to health issues. Whether they have health insurance or not, and whether they ultimately choose bankruptcy, it's estimated that 20% of adults between the ages of 19 and 64 have trouble keeping up with their medical bills. In order to keep health insurance premiums affordable, many have chosen high deductibles, which means big bills even before coverage kicks in.