Facing overwhelming medical debt

On Behalf of | Jul 14, 2020 | personal bankruptcy |

Over the last two decades, filing for bankruptcy has become more of an acceptable step for individuals and families who strive to protect their finances and create a stable economic future. Historically, bankruptcy might have largely been considered a last resort in a worst-case scenario, people now understand the Bankruptcy Code was developed to give hardworking Americans a chance at a fresh financial start.

Through numerous social and economic crises, it is not uncommon for individuals to quickly reach the breaking point of their finances. Often, it is one emergency that can throw everything into a tailspin. A divorce, natural disaster or job loss can all devastate a family’s financial security. There is one type of emergency that is at the heart of most bankruptcies – medical.

While many people find credit card debt to be an overwhelming burden, 65 percent of all bankruptcies are tied to medical issues. It has been estimated that 530,000 families turn to bankruptcy each year due to the bills related to various medical issues. Whether the main reason is inadequate health care insurance, chronic conditions, exorbitant costs or a combination of the three, Americans can face overwhelming medical debt with seemingly no escape.

Based on your unique circumstances, there are numerous options available. Most people will select either Chapter 7 bankruptcy or Chapter 13. Typically, the decision is based on income and assets. It is important to seek the guidance of an experienced bankruptcy attorney who can thoroughly examine your situation and provide options to consider and pitfalls to avoid.

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