Medical bills account for an astonishing amount of debt in the United States, in fact medical debt is the number 1 cause for bankruptcy in the country! What medical insurance you do have can be quickly overwhelmed and the continuous medical payments afterwards can put a family or individual into debt extremely quickly. As listing the cause for your bankruptcy is not mandated, it can be hard to figure out what causes people to file bankruptcy. What studies that have been done show that medical bills account for 26% of all bankruptcies filed; the actual number could be much higher! Medical bills are quite nasty and can sneak up on anyone, most medical bill related bankruptcies were actually filled by well educated homeowners with middle class jobs!
Why Is Medical Debt So Tough?
When you are caught up in medical debt, chances are you may not be able to return to your job or the life you had before. A worse case scenario is running into a debilitating injury that racks up the medical bills and prevents you from going to work. This is why medical debt can get so serious, lack of income coupled with rising debt is a recipe for disaster. On top of this, the price for medical services in the U.S. only continues to rise with every passing year. Health expenditures have outpaced wage growth in the country, people are not earning enough to keep up with their medical debt.
Filing for Bankruptcy
Thankfully, one of the types of debts eliminated when filing for bankruptcy is medical debt! By starting the process the court will put an automatic hold on your debt, stopping debt collection agents and eliminating the threat of wage garnishment. This respite allows you to readjust your debts and finances so that you can find a way forward! It’s important that you find an expert bankruptcy attorney to guide you through this process!
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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