Bankruptcy is unfortunately common in America, but it does have its place. Bankruptcy laws allow people who are struggling with debt to get out of that debt and to be able to move forward with better financial security in most cases. Debtors can choose from several types of bankruptcy, and those each have their own benefits and downsides.
The interesting thing about bankruptcy in America is what the primary cause tends to be. One study shows that 66.5% of all bankruptcies are linked to medical issues, such as taking time out of work or the high cost of care. The same study estimates that around 530,000 families file bankruptcy annually just because of those medical-related issues.
What makes health care a leading cause of bankruptcy claims?
One of the issues with health care in America is that it is expensive. As a result, the insurance policies that people can afford tend to cover some of the care needed but with high deductibles. So, even with health insurance you may end up liable for a significant portion of the medical charges.. That debt may seem impossible for some families and individuals to pay off, considering all they’ve just been through with an illness or injury.
What should you do if you’re struggling with medical debt?
Medical debt doesn’t have to weigh you down. Bankruptcy is an option that may be right for you, but there are other alternatives to this debt relief option as well. Our website has more information on bankruptcy and how to know when it’s appropriate for your situation.