There are many myths and misconceptions about the average bankruptcy filer out there, and these stigmas can be incredibly hurtful when you’re dealing with a significant financial crisis of your own. The truth is that most people who file for bankruptcy are hard-working individuals who either suffered a job loss, a death in the family, or a serious medical condition. As one recent study in the American Journal of Public Health proved, more than 67% of bankruptcy filers cite medical expenses as the top reason behind their bankruptcy.
The Link Between Medical Bills and Bankruptcy
In spite of the Affordable Care Act, the total number of bankruptcy filers motivated by medical expenses has actually stayed roughly the same since 2014, when approximately 65% of bankruptcy filers cited a medical reason. Although more people have access to health insurance and public option plans than ever before, these aren’t always enough to cover the cost of a serious medical condition like cancer, or a traumatic brain injury.
This is because health insurers are adept at creating loopholes and gaps in coverage, even on a premium employer-provided healthcare plan. In the event of job loss, your medical insurance situation can quickly become even more dangerous: Most states do not provide more than six months of unemployment insurance. With such significant gaps in the American health care system, it’s easy to see how a single bad diagnosis can push even the most prepared individual into serious debt.
How Can Bankruptcy Help Me?
Although consumer bankruptcy is sometimes viewed in a negative light, it can provide necessary and even life-saving financial relief for those dealing with the high cost of medical expenses. Depending on whether you qualify for Chapter 7 or Chapter 13 bankruptcy, you may either be able to discharge all of your medical debts, or to follow a monthly payment plan to make good on the costs over time.
No matter which form of bankruptcy may be right for your unique situation, our Brevard County bankruptcy attorneys are on your side. We can provide compassionate counsel during this difficult time, and help you explore all the debt relief options available to you. Most of all, we’ll aim to help you find financial freedom again, after dealing with the burden of major medical expenses for so long.
If you’re ready to speak with our skilled bankruptcy team, don’t hesitate to call us at (321) 320-6088 for a free case evaluation.