Many people come face to face with prospect of declaring bankruptcy because of a health crisis. Despite recent changes in health care policy, American households continue to struggle with medical debt. Americans are putting more of their take-home pay toward medical costs than ever before and, oftentimes, having to neglect other obligations. Let’s face it – your health or a family member’s health is your first priority, however, it is easy to get behind financially when unexpected or chronic health issues arise and many are having to contemplate bankruptcy to manage.
Medical bankruptcy doesn’t just happen to the uninsured. In fact, research reveals that many people who file Chapter 7 liquidation or Chapter 13 reorganization bankruptcies do so because of exorbitant medical costs not covered by their existing health insurance – nearly 80% of people that file for medical bankruptcy have insurance. Unfortunately, the policies many Americans are able to afford come with high deductibles and co-pays, and do nothing to cover missed hours from work. As a result, a health issue can result in an adverse domino affect on many American’s finances.
The rising cost of health care and the growing number of Americans without adequate health insurance coverage has left many Americans contemplating a bankruptcy in order to get a fresh start. If you qualify for a Chapter 7 bankruptcy, medical debt is considered a non-priority, unsecured debt, which means that the debt can be wiped out when you receive your discharge. If you do not qualify for Chapter 7 based on your income, a Chapter 13 reorganization may be an option in order to set up a reasonable payment arrangement until you get back on your feet again.
If you have questions regarding your options with regard to bankruptcy, contact the Brookfield, Wisconsin Law Offices of Andrew C. Ladd for help. For 30 years, Andy has worked on the behalf of clients who are struggling with difficult debt challenges. He uses his extensive knowledge of the U.S. Bankruptcy Code and years of successful experience to find the best strategy for his clients. Call today.