For the majority of people, seeking medical treatment outweighs the possibility of financial struggles in the future. Fortunately, bankruptcy exists as an option for those who are facing a mountain of debt following a complex medical procedure or lengthy physical therapy.
20 percent of bankruptcy filers blame their financial troubles on medical debt
In many cases, Americans have such high medical debt levels that they’ll never be able to pay down their bills. Approximately 20 percent of U.S. residents who file for bankruptcy state that medical debt was the reason for their bankruptcies. Many Americans had no choice but to rack up insurmountable levels of debt because they didn’t have health insurance to cover their medical costs during a time of emergency.
However, incurring medical debt is not always due to not having health insurance. Many Americans buy cheaper, more affordable health insurance plans to save money, but the higher deductibles associated with cheaper insurance plans end up costing them in the long run if they actually have to use their insurance.
Will medical debt hurt your credit rating?
Fortunately, holding a large amount of medical debt on your credit history is not as damaging to your credit rating as holding a large amount of credit card debt. Nevertheless, it can still create financial problems and other types of debt issues when paying medical debt bills affects your quality of life and your ability to pay your other bills on time. It’s not very difficult to see how a large amount of medical debt could send someone into a debt spiral.
Are you having a hard time paying down your medical bills?
If you’re suffering under a mountain of medical debt, it might be possible for you to resolve that debt through the bankruptcy process. Most consumers with debt issues find that Chapter 7 or Chapter 13 bankruptcy fits their situations, but both these types of bankruptcy have different qualifications associated with them. Make sure you learn more about bankruptcy to determine which type of bankruptcy is right for you, and whether you can benefit from this financially helpful process.