How illness contributes to bankruptcy

On Behalf of | Aug 21, 2023 | chapter 7 |

Bankruptcy is not necessarily the consequence of poor spending. You can get into debt because of an unexpected situation, such as an illness. Medical debt is one of the leading reasons people declare bankruptcy.

This guide discusses how illness contributes to bankruptcy:

Medical bills are high in the U.S.

Healthcare costs in the U.S. are higher than in most countries. Many factors contribute to this, including unregulated drug pricing, wasteful systems, medical professional salaries and profit-driven hospitals.

Most Americans depend on health insurance to cover medical expenses. However, millions of individuals, lack health insurance, which means they pay medical bills out of pocket.

If someone uninsured gets a serious medical condition, they can get easily get deep in debt. However, insured people can also get into medical debt, as some health plans don’t offer the utmost protection. One may receive a limited payout or find it challenging to access timely health care. Further, some insurance companies are notorious for denying claims.

How can declaring bankruptcy help?

If you file for bankruptcy, your medical bills, including those you paid with personal loans or credit cards, can be discharged if you meet the requirements. It’s crucial to obtain more information about the best bankruptcy option for your case and the steps to take.

Additionally, declaring bankruptcy can save you from lawsuits. Further, it will stop endless calls and emails from creditors and wage garnishments. Thus, consider doing it sooner.

The U.S. has high healthcare costs that affect both insured and uninsured people. Hence, even though you may have done your best to avoid bankruptcy, medical-related reasons may leave you no choice. If this is your case, it will be best to get legal help to make informed decisions.