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Does Getting Sick Cause Bankruptcy?

Does Getting Sick Cause Bankruptcy?

It appears so.  With the dawn of nationalized healthcare many Americans hope that they will never have to face the burden of debt related to a catastrophic injury or illness. While this may help with future healthcare costs, many Americans currently face medical bills that they are unable to pay for. The data shows that the average healthcare debt for Americans is almost $10,000 per debtor. Currently, medical debts account for a substantial portion of bankruptcies filed each year. There are estimates that as much as one-quarter of all bankruptcy filings are due to medical debt and to make matters worse, as much as 25% of all credit card charges are related to healthcare costs. This article from www.theconversation.com explains the challenge that many face when overwhelmed with medical debt and why some choose to file bankruptcy.

As the article points out, bankruptcy can give you a fresh start but not all debtors qualify for bankruptcy. In addition, some folks hold certain job certifications that prevent them from filing for bankruptcy. What options are out there when someone cannot file bankruptcy? A debt attorney can assist consumers in negotiating large reductions in medical debt. Debt settlement is available to everyone and does not require you to qualify for it. An experienced debt settlement attorney will also provide you with strong consumer protections and ensure that settlements are put in writing. If you are faced with enormous medical debt or are even being sued by a debt collector for a medical debt, do your research and contact a qualified debt attorney in your area.

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.