The cost of medical care in the United States is astronomical, even for those who have good insurance. It was thought that the Affordable Care Act would reduce the negative impacts that seeking medical care had on individuals, but there has been no relief. Around two-thirds of individuals who file for bankruptcy note that medical problems have contributed to their financial troubles.
This doesn’t mean that the medical bills are the sole reason these individuals are filing for bankruptcy. It is usually a two-fold issue. First, the medical bills are additional expenses that the person didn’t plan for. Second, the time off of work means that they missed out on income that they need to cover all the bills. These lead to a crushing weight that spurs the individual to take action.
Many people in the United States don’t have a large enough savings to cover that type of double whammy. Around 40 percent of Americans have the savings necessary to cover an emergency with an expense of $1,000. When it comes to medical care, that amount might be only a drop in the bucket of the out of pocket medical expenses a person has when they get ill or have an accident.
While filing for bankruptcy is often thought of as a last resort for people drowning in debt, it can be the most viable one. This financial restart can wipe out medical bills and other unsecured debts to allow the person to focus on their health without having to field debt collector calls and mails. If you are overwhelmed by medical debt or have mounting bills because of a medical issue, bankruptcy might be the relief you need.