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Medical Debt Continues To Be Driving Force Behind Bankruptcy Filings

Posted By Allmand Law Firm, PLLC || 28-Jun-2013

A new study confirms what many American households continue to struggle with; debt from medical bills. When it comes to filing for bankruptcy such bills continue to be one of the main reasons why people seek legal protection. Besides rising medical costs, other reasons bankruptcy is commonly filed include unpaid mortgages and credit card debt. Even those who have health insurance coverage are immune to financial hardships.

Data from the Centers for Disease Control and Prevention (CDC), the United States Census, the federal court system, and other organizations were collected, analyzed, and compared. Studies claim that roughly 20 percent of American adults are struggling to pay medical bills. The study has emphasized the continuing burden medical costs have had on families across the country. Usually, when bankruptcy is filed some may say it is due to poor financial choices or lack of good spending habits, but for others this isn't the problem.

The study showed some startling information with 25 million American's admit to being hesitant in taking their medication just to try and save money. It is estimated that close to 10 million Americans may deal with medical debt they cannot pay. A whopping 56 million Americans may struggle in paying their medical bills this year, with many being under the age of 65. Over 1 million American households are expected to file bankruptcy due to inability to pay medical bills. Maxing out credit cards, draining savings accounts, and even refinancing homes have all been completed, leaving bankruptcy as a final resort.

Reference: http://www.nerdwallet.com/blog/health/2013/06/19/nerdwallet-health-study-estimates-56-million-americans-65-struggle-medical-bills-2013/

Categories: Medical Bills
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