Medical debt is very common for Americans. In 2024, researchers found that roughly 31 million Americans had taken on some form of medical debt. This accounted for 12% of adults in the United States. Cumulatively, they owed around $74 billion.
Notably, researchers only looked at new debt that had been taken on in the previous 12 months. They included debt that a person took on for themselves or for someone in their household, such as a parent’s medical debt for their child.
Researchers also asked Americans if they were concerned about medical debt in the future, especially if there were emergencies or major health events. Some 58% of Americans said that they were concerned this could happen to them, showing that this is an issue that affects the majority of people in the United States.
What options do you have?
Even with health insurance, medical debt is possible. It is important to understand what options you have if your debt becomes insurmountable.
One potential option may be filing for Chapter 7 bankruptcy. By doing this, you liquidate nonexempt assets to pay off the portion of the debt that you can afford, and then you seek to have the rest of the debt discharged.
Another potential option is Chapter 13 bankruptcy. This can take debt that is due immediately and spread it out over three to five years in a repayment plan.
If you’re dealing with overwhelming medical debt, it is very important to understand how bankruptcy can help, what options you have and what steps you will need to take moving forward. Getting experienced legal guidance can help.
