Unsecured debt & bankruptcy in the United States

By Minh Tong Reviewed by Melissa Cook Updated Apr 20, 2018
Unsecured debt & bankruptcy in the United States

Unsecured debt has a direct correlation to bankruptcy and debt anxiety in the United States. Just this year alone the total amount of unsecured debt has increased to 1 trillion collectively (credit card debt increasing 2022). According to HuffingtonPost, some of the most common factors that cause bankruptcy are medical bills, job loss, student loans and divorce.

With the amount of debt increasing, consumers should start considering budgeting expenses and freeing up cash flow. However, for some it might be too late to take precautionary measures that should have been taken years ago. Once a person becomes completely dependent on credit cards to buy everyday things like groceries, gas or even bills, trying to put an effective plan in place can seem more like a fantasy than a reality.

In fact, according to research done by creditcards.com, “Credit card defaults, after a lengthy decline, are starting to tick up slightly.” Credit card delinquencies and defaults on the rise can foreshadow consumers considering bankruptcy in the United States. 

Bankruptcy has a long-term effect on your public record, between 7 to 10 years showing, which can cause problems for renting a piece of property, getting an auto loan, or even finding a job in some cases. If a person were to receive an inheritance, that could be seized as well. According to TheBankruptcySite, “If you receive an inheritance after filing for bankruptcy, it might become part of your bankruptcy estate.” Though bankruptcy may seem like the worst option, it is not the end of the world. Many people have needed a fresh start to continue their financial journey with more peace. Read on about debt relief for first responders.

We need to break the silence on the topic of debt and bankruptcy, debt collectors, and debt relief strategies, which most people feel embarrassed to ask about. If you have a large burden of debt and are considering bankruptcy, seek out a debt settlement attorney or an expert at Americor to guide you through this process and through debt relief options. Our caring staff will help you find your best option and walk with you every step of the way.

See our article on how to live a debt free lifestyle.


Minh Tong

Minh leverages decades of experience in marketing, sales management and technology to provide high-level advice and lead new initiatives. Minh has a Bachelor of Science in Business/Managerial Economics from University of California at Irvine. He brings over 20 years of sales and executive management experience to the company and his responsibilities include customer service improvement, professional development, and carrying out communications and marketing. Originally from the east coast, Minh resides in southern California and enjoys spending time with his family, going to the beach, and playing a variety of sports.