When it comes to healthcare costs, some people in Oregon mistakenly believe that health insurance will protect them from medical debt. Unfortunately, this is not always the case. Life is full of surprises, and even people with medical coverage can find themselves with overwhelming debt.
As healthcare costs continue to rise in this country, more people with medical debt are filing for personal bankruptcy. When an individual or a couple files for Chapter 7 bankruptcy, medical debt can be completely eliminated. In a Chapter 13 bankruptcy filing, debt is restructured. Due to the fact that medical debt is considered unstructured debt, however, it can be erased or significantly reduced. For these reasons, bankruptcy is a real option for people with overwhelming medical bills.
The American Journal of Medicine conducted a study that found that 62 percent of all bankruptcies stemmed from excessive medical debt in 2007, a significant increase from 2001. This number is expected to continue to rise; trends indicate that 65 to 70 percent of people who will file for personal bankruptcy in 2013 will do so because they are looking for relief from medical expenses. According to the study, the majority of these people have health insurance.
You never know what challenges life will hand you. If you or a loved one is experiencing medical issues, the last thing you need to worry about it unmanageable debt. If you are struggling to pay hospital bills and you are looking for debt relief, and attorney may be able to help.
Source: ValueWalk, “Ahead Of Obamacare Implementation, Medical Expenses Still Largest Cause Of Bankruptcy,” Kathy Hemsworth, July 1, 2013