Medical Debt Continues to Be Leading Cause of Bankruptcy

Medical Debt

Out of the
70 percent of Americans who file for bankruptcy, over 60 percent of them
file due to debt from medical bills
. Many consumers continue to struggle in paying medical bills and it continues
to be the leading cause of
bankruptcy. A recent report looks at how ethnic groups such as Latinos face ongoing
struggles in paying medical debt with 1 in 4 having difficulties in paying
their bills.

While this problem is ongoing, experts review a number of aspects as to
why this is still a huge problem, even for those with insurance coverage.
When you are unable to pay medical debt, collectors are likely to pounce
on you for payment. Many consumers are well aware of how fast bills pile
up when you become unemployed, have limited income, or a medical illness
that requires extensive care. Some people have a limited ability to earn
income because of their health.

Then you have a large number of people who are uninsured or underinsured.
In the case of Latinos, experts predict close to 200,000 will file bankruptcy
this year due to medical debt. Even if you have insurance you may not
be out of the woods. Some people find it difficult to pay insurance premiums
alone. Some who have insurance are surprised to learn what it may not
cover if sudden illness occurs.

The good news is with bankruptcy you can explore your options when dealing
with medical debt.
Chapter 7 bankruptcy may help you eliminate or discharge qualifying debt.
Chapter 13 bankruptcy may help you repay what you owe through a repayment plan based on your
ability to make payments.

Reference:
http://latino.foxnews.com/latino/money/2013/08/15/nerdwallet-medical-bankruptcy-is-on-rise-as-1-in-4-latinos-struggle-to-pay/

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By |2018-11-16T23:03:40+00:00August 29th, 2013|Medical Bills|Comments Off on Medical Debt Continues to Be Leading Cause of Bankruptcy