Did you know that almost 50% of bankruptcies in the United States are caused by unpaid medical bills? According to statistics, an estimated 1.5 million Americans might file for bankruptcy protection within the year.
Although this is a very discouraging prediction, many still believe that spending too much on things you do not actually need is the very reason why people go bankrupt. According to authorities in credit repair however, this is not the case because most bankruptcies are caused or triggered by medical expenses.
Medical bankruptcy is not unheard of but many Americans do not know that it actually is the trigger for 62% of the total of bankruptcy filings. From 2001 to 2007, US medical bankruptcies went up to almost 50%. This is rather alarming and should be a cause for concern for American families.
Does this have anything to do with how much money you make each year? The answer is yes and no. According to a study done by the American Journal of Medicine reported most of those who file for medical bankruptcy are well educated individuals and even have a house of their own. This is quite surprising because one would expect that those who make enough money will be able to pay for their medical expenses.
Debt collection practices in the United States cause many families or individuals to file for bankruptcy. Fear of being sued is common place. If you owe a credit card company a certain amount, the chances of you getting sued is slim but with medical bills, you can be sued in a small claims court. Many want to declare themselves as bankrupt to seek protection from lawsuits.
I am aware of several individuals who have suffered nervous breakdowns due to incessant collection activity on credit card bills and medical debt. It is regrettable enough to have the misfortune to fall ill or become unemployed. But to be relentlessly hounded to pay for medical treatment seems, frankly, verging on the immoral. ~ Alan
A declaration of bankruptcy is not necessarily the best solution to your problem. Talking to a lawyer who is an expert in bankruptcy is a good first step. Examining your options without panicking is imperative so that you can find a solution to your medical bill payments.
Make sure you have adequate health insurance cover to protect you from excessive medical bills. If you can’t afford full medical coverage, at least get a policy to protect you in the event of an accident or a long term illness. Some of these policies have large deductibles, but will cover your expenses over $5 – $6 thousand dollars. Don’t leave yourself unprotected.
Alex Lickerman, MD, states that, “what’s worrisome now is that people are having to choose between saving money and getting necessary help for serious conditions.”