An accident or illness could unexpectedly occur, and even when an individual is insured, these situations could result in financial hardship and unpaid medical bills. When medical bills go unpaid, an individual's credit score could be harmed. This could result in bigger issues such as problems applying for a loan, applying for a credit card or even leasing an apartment or a home.
According to the Consumer Financial Protection Bureau, roughly 43 million Americans have unpaid medical debt listed on their credit report. Additionally, about 18 to 26 percent of personal bankruptcy filings are caused by medical debt.
Whether an individual has unpaid medical bills or medical charges applied to a credit card, there are options available to discharge medical debt. Depending the debtor's income, he or she could liquidate their debts through a Chapter 7 bankruptcy or enter a repayment plan to repay part of their debts in a Chapter 13 bankruptcy.
While it is a difficult decision to make, individuals struggling with medical debt should understand how bankruptcy could help them get a fresh financial start. Overcoming financial problems is not an easy process; however, becoming well-informed could help debtors fully address their financial hardships.
If you need help with overwhelming medical debt, contact a personal bankruptcy attorney today.
Source: The Conversation, "Why medical debt - and bankruptcy - are growing problems"