Consumers who are struggling under a mountain of debt often turn to bankruptcy as the last viable solution to help them get a fresh financial start. While a wide range of factors can contribute to bankruptcy—including student loan debt, poor investments, divorce, job loss, and other unforeseen circumstances—medical debt is the clear leader when it comes to Chapter 13 and Chapter 7 relief. Read on to better understand why medical bills so often lead to bankruptcy.
If you have recently taken a financial hit, you are not alone. The crisis in the home mortgage market coupled with the recession has left millions of Americans out of work or underemployed. While thousands of medical bankruptcies are filed by men and women who lack health insurance, the vast majority of Chapter 13 or Chapter 7 bankruptcies relating to medical debt are actually obtained by patients who had health insurance at the time of illness or injury and simply lacked the extra money to pay.
Why is it so difficult to pay for medical expenses even with health insurance? Not only are Americans low on cash, but medical bills can also quickly pile up. Individuals who are diagnosed with painful injuries and chronic illnesses require lifelong medicine and doctor’s care, while others suffer sudden and tragic accidents that lead to thousands of dollars in expenses. On average, medically bankrupt families have nearly $18,000 in out-of-pocket costs.
Unfortunately, falling ill or being hurt in an accident all too often translates into missed work. Some patients are never able to return to their jobs at all, while others must make do with part-time work. Without an income, bankruptcy is the only solution.
It is possible to declare bankruptcy and move on with your life. At Burr Law Office, our attorneys we provide Milwaukee affordable bankruptcy and debt relief services to help eliminate or consolidate your debts, and we understand your situation. We have helped countless clients find relief with Chapter 13 or Chapter 7. Call (877) 891-1638 to discuss your filing options with an experienced Milwaukee bankruptcy attorney.