However active and healthy you are, illness or injury could catch you at any time. If you need to spend time in the hospital, you will lose out on earnings. That could make paying everyday bills such as the mortgage and essential services impossible.
Then comes the cost of the associated medical bills. As someone who rarely visits the doctor, you might have taken out less insurance cover than someone prone to ill health because you thought you would not need it. Before you know it, your sudden poor health has also left you in financial ill-health.
Medical bills play a factor in 66.5% of bankruptcies, making them the singular most frequent reason people file for bankruptcy. So you would certainly not be alone, nor should you feel guilty. It’s simply a result of the health system we have.
Chapter 7 can clear your medical debt
Medical bills are one of the debts you can clear by filing for Chapter 7 or Chapter 13. Even if you cannot clear all your other debts, removing the significant monthly burden of your medical debt will make it easier to pay the remaining obligations.
Why might it be better to file sooner rather than later?
Medical providers will happily go after any money you have, whether it be the house you worked hard for or the money you were setting aside for your child’s college education. Filing can stop them before they take it all.
Getting legal help to understand more about personal bankruptcy options can help you make the right decision and protect your financial future while you still have a chance.