Could family structure inform financial health?

Readers of this blog are likely well aware that bankruptcy can be a viable option for those facing financial difficulties. This course of action may be taken for a variety of reasons including the loss of a job and medical bills. While individuals from all backgrounds could find that they are facing bankruptcy a recent study sheds some light on the role family structure plays in financial matters.

The study, which was conducted by Allianz, looked at traditional families (consisting of spouses of the opposite sex and a minimum of once child no older than 20) and modern families (fitting one of the following: multi-generational families, single parent families, couple families, blended families, older parent with young children families and boomerang families). The difference in financial challenges faced by the traditional versus modern families will likely be of interest to many.

Families that fit under the “traditional” umbrella fared better than “modern” families in every area explored, including financial security, financial hardships, collection of unemployment benefits, and the loss of a main source of income. After learning this, it is perhaps not surprising to hear that modern families are more likely to file for bankruptcy than traditional families. The study found 22 percent of modern families pursued this course of action as compared to the 11 percent of families that fit the definition of a traditional family.

Many families of all types have likely addressed financial difficulties via a bankruptcy filing. Whether one qualifies for Chapter 7 or Chapter 13, this course of action may be the best way to handle certain types of insurmountable debt. To determine if this is the case for your situation, the best place to start is a consultation with a bankruptcy lawyer.

Source: InsuranceNewsNet.com, “Shifting Structure Of The Family Reveals New Financial Challenges,” May 27, 2014

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