Medical Bills May Surpass Credit Card and Mortgage Debt as Leading Cause of Bankruptcy

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A recent study continues to confirm one of most leading causes of consumer
bankruptcy: medical bills. Yet, the study also brought to light other
significant points that may hint medical bills may become the number one
reason why
bankruptcy is filed. Unpaid medical bills may surpass mortgage debt and credit card
debt for various reasons, despite more people getting access to healthcare
insurance.

The Affordable Care Act, also known as Obamacare, is helping millions of
Americans obtain health insurance, with a large number of consumers being
able to obtain healthcare coverage for the first time in years. But many
bankruptcy filings that have occurred in recent years were due to consumers
unable to pay medical bills. Roughly 78 percent of people who file bankruptcy
due to overwhelming medical debt had health insurance.

A 2013 study completed by NerdWallet Health showed evidence of medical
debt possibly becoming the number one cause of bankruptcy over credit
card debt and mortgage debt. High insurance deductibles, copays, and medical
costs make it difficult for families to manage necessary household needs
and put further stress on finances. Americans who were forced out of a
job may have tried to continue medical coverage through COBRA, though
these payments alone are a challenge especially if you have been laid off.

Experts believe medical expense rates have grown so quickly they have gone
above inflation. Making it a dominate force many consumers are forced
to deal with. Also known as a medical bankruptcy, consumers considering
filing because of
medical debt should review their filing options closely with an experienced bankruptcy attorney.

Reference:
http://www.foxbusiness.com/personal-finance/2014/02/18/medical-bankruptcies-are-still-problem-here-what-to-expect/

By | 2017-12-13T00:46:40+00:00 March 27th, 2014|Medical Bills|Comments Off on Medical Bills May Surpass Credit Card and Mortgage Debt as Leading Cause of Bankruptcy