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Medical debt is a common reason for bankruptcy

On Behalf of | Oct 20, 2021 | Bankruptcy

The paying of medical debt can seem impossible. The burden has been significant, affecting many aspects of your life. But what options are there? Bankruptcy could help you.

You are among many Americans who have been hit with extreme medical debt. Your life is going smoothly; you’re paying your mortgage, spending a tremendous amount of time with your children and their activities, and then abruptly, you are struck with a severe medical ailment. The ongoing treatments put you in deep debt. Not only must you focus on recovering your health, but also turning around your financial life.

Review medical bills and seek workable payments

A 2019 study published in the American Journal of Public Health disclosed that more than two-thirds of the people who file for bankruptcy cite medical issues as the primary reason. Those issues include the costs associated with medical treatment and time missed from work.

In addition, researchers discovered that roughly 530,000 families annually file for bankruptcy because of medical issues and the associated bills. Researchers contacted more than 900 Americans who filed for bankruptcy during the four years of 2013 to 2016 for their findings.

Another enlightening researcher discovery: Health insurance, sometimes, does not shield people from insurmountable medical debt. However, here are some steps that may help you:

  • Review your medical bills for errors. Mistakes, sometimes, happen. There have been instances in which hospitals billed a patient twice for the same procedure. Get to the bottom of this by contacting the medical facility’s billing department. Do not forget to reach out to your insurance company to learn why it did not cover a specific procedure.
  • Negotiate with the medical provider and billing department. Study and understand the costs related to your procedure because this can help you in your discussions.
  • Pursue a payment plan. Some hospitals and clinics may be amenable to creating a low-interest payment plan. In general, many health care facilities do not enjoy working with credit collection companies.

Filing for bankruptcy can wipe away medical debt. Doing so works in your favor, allowing you to recover from financial hardship and get back to certain routines in your life.

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