The Truth About Medical Bankruptcy
Some say it’s a political issue.
Some will drain their retirement account to pay medical bills.
This is a mistake.
Others will sell all they have to pay medical bills.
This seldom even makes a dent in the bills.
Many will scrimp and save and cut corners, even on the medications and treatments they need to overcome their health issues.
This is dangerous. Counter-productive – and not necessary.
The truth is that medical bankruptcy is more common than you probably think.
Here are some startling – but true – statistics:
- “Medical bills cause 62 percent of bankruptcies ” – 2007 Harvard study
- “17 percent of all bankruptcy cases are due to medical bills.” – 2006 Kellogg School of Management study
- “Medical debt causes more bankruptcy cases to be filed than any other reason.” – 2013 NerdWallet Health study
- “56 million citizens under 65 will face difficulty paying medical debt (2013 study)” – 2013 NerdWallet Health study
The “social safety net” does NOT adequately cover everyone.
Hardest hit are the hardest working members of our society. You and me and folks like us.
Even if we have insurance, it seems to cover less, and cost more.
If you drain your retirement to pay medical bills, what will happen when you need your retirement funds?
If you don’t find a way to pay for your medication or other expenses to recover your health and stay healthy, you just create a new problem trying to solve your current problem.
Nobody is going to be there for most of us. We have to figure out the best way to deal with overwhelming medical debt. And bankruptcy is an option.
If you are faced with staggering medical debts, you need to explore all options.
If you cannot balance your budget, and find a way to make a payment plan that is realistic and acceptable to ALL your creditors, including all of your non-medical creditors, then you need to explore what a bankruptcy plan will look like.
You may not need or want to file a chapter 7, which pays nothing back on most debts.
You might be able to afford, or just want to file a chapter 13, which is a payment plan.
Paying something, according to your ability to pay, may be a good option.
And, if you are in a chapter 13, then you will have an option to modify it later, if need be, due to future medical needs that may arise, and the bills that often go along with them.
I’ve helped thousands of families through difficult financial struggles caused by medical debt.
Often we are able to protect the retirement, so it’s there for you when you need it later.
And we don’t have to sell any of our property; I can often protect everything,
And, as a certified credit counselor and financial advisor, I help my clients to actually improve their credit after they file the bankruptcy that puts an end to the pressure of medical bills that are simply impossible to pay.
If you are facing medical bills you simply can’t pay. Don’t lose another night’s sleep worrying about what to do.
Find out what a medical bankruptcy can do for you.