One of the main reasons that Americans make the decision to file for bankruptcy involves the accumulation of substantial medical debt. Astronomical medical debt can occur to anyone in the United States at any time, and can cost them their entire life savings or make them financially destitute. Even with good health insurance, medical debt can financially cripple a person and force that person into bankruptcy as a financial fresh start. As many medical debts may have the ability to be discharged in a Chapter 7 bankruptcy, learning your legal rights and your options for bankruptcy can help you make this important decision.
Medical Debt and Bankruptcy in the United States
The American Journal of Public Health provides research directly related to the financial intersection between bankruptcy and medical debt. Shockingly, over two-thirds of all people in the United States that make the difficult decision to file for bankruptcy do so because of their medical debt, or as a response to an injury that leaves them unable to return to work. Either way, in both cases, a medical condition or illness leaves people unable to repay their debts in a timely manner and forces them to consider bankruptcy as an option.
Health Insurance Does Not Help
Most Americans know that there is a national discussion regarding health insurance and how many people do not have appropriate coverage in the United States. The Affordable Care Act was passed in 2010 to address this issue. However, the medical crisis in the United States continues. Many Americans still do not have access to quality healthcare coverage that pays a considerable amount of medical expenses. Even those people in America who have good health care coverage can be left in financial ruin if they experience a significant medical illness or condition not covered by their insurance policy. Statistics show that even after the Affordable Care Act was passed, bankruptcies continued to rise as a result of accumulated medical debt.
Bankruptcy Resulting From Medical Debts
If you are considering filing for bankruptcy because of your medical debts, then you are not alone. While you may feel overwhelmed with debt, the good news is that there are laws that will allow you to receive a financial fresh start. Medical debt is considered under the law to be consumer debt, which is a type of debt that is often discharged (dismissed) in a Chapter 7 bankruptcy.
Contact an Experienced Bankruptcy Attorney Today
Bankruptcies can only be declared every few years, and therefore it is imperative that if you are making the decision to file for bankruptcy, that you visit with an experienced attorney so that your case can be handled correctly and you can receive the financial fresh start you deserve. We would welcome the opportunity to consult with you about your case. Contact the experienced bankruptcy law attorneys at Lankford & Moore Law to help you determine how best to proceed with your bankruptcy and to provide you with proper legal guidance regarding your medical debts.