Medical debt can quickly send a person’s financial situation spiraling out of control. Even one visit to the doctor’s office could end up costing thousands of dollars. Many times doctors will do very thorough testing because of medical malpractice issues, but this can lead to large outstanding medical bills. A new survey found that almost half of low and moderate income families put medical expenses on credit cards and carry that debt.
This large debt can cause some families to seek relief from a dire financial situation. Chapter 7 bankruptcy relief can help families eliminate some debts which cripple their financial dreams. Many people fear that they are the only people that are filing bankruptcy and often feel embarrassed. The truth is many people are in the same situation.
With a rough economy and high unemployment many families find themselves fighting to stay afloat financially. In fact, 40 percent of households that carried debt on credit cards did so because they were unable to pay cash to cover basic living expenses. Adding to that, 62 percent of people who have had medical debt in the past three years say that it has contributed to their credit card debt situation. People often deal with their health first and hope to figure out the finances later, which can sometimes be difficult.
This shows that debt is often not anyone’s fault in particular. There are many variables that can lead to a family’s complex financial situation. Chapter 7 bankruptcy can help many people deal with their growing debt problem. An experienced bankruptcy attorney can help a family sort through the complexities and find a solution that can help their financial future.
Source: New York Times, “Medical Costs Contribute to Credit Card Debt,” Ann Carrns, May 22, 2012