According to Debt.org, approximately 60 percent of bankruptcy filers have incomes of less than $30,000. For many of these filers, even a small economic hiccup can cause financial ruin, such as reduced hours at work, a lawsuit, or medical expenses.
But if you think that personal bankruptcy happens only to lower-income people, consider that many upper-income professionals are seeking bankruptcy protection. This is largely believed to be the continuing fall-out that resulted from the 2008 financial crisis. Among the professions that seem to be overly susceptible to bankruptcy include professional athletes, physicians, and investment professionals.
Professional Athletes
A recent study published in the National Bureau of Economic Research reports that nearly one in six NFL players files for bankruptcy protection within a dozen years after leaving the sport. While many professional athletes see spikes in their yearly incomes, these spikes are generally short-lived. An athlete cut from a team is likely to find himself without any income source. Even long-time professional athletes who have made many millions through their sports are not immune to personal bankruptcy filing, like boxing’s Mike Tyson, baseball’s Tony Gwynn, and football’s Warren Sapp.
Physicians
Medical doctors were once considered the top of the professional food chain. However, many physicians are filing for Chapter 11 bankruptcy according to CNN Money. According to CNN, “Doctors blame shrinking insurance reimbursements, changing regulations, and the rising costs of malpractice insurance, drugs and other business necessities for making it harder to keep their practices afloat.”
Investment Professionals
During the past recession, many individuals watched a falling stock market drain their investment portfolios and retirement incomes. Others cashed out of the stock market and put their money into safer investments. One of the biggest losers during this period were small firm personal investment advisors who lost clients and transactions when investors pulled their money.
If you are experiencing financial difficulty, speak with an experienced bankruptcy attorney and discover how the federal law can help you. A high income does not exclude you from bankruptcy protection, and may be the answer to your financial woes.
If you are considering filing for bankruptcy please call the experienced attorneys at Fears Nachawati Law Firm to set up a free consultation. Call 1.866.705.7584 or send an email to fears@fnlawfirm.com.