Medical Debt is Behind 62 Percent of Bankruptcy Filings

Medical bills continue to be an issue in the US, and especially now during a viral pandemic affecting millions—not to mention the hundreds of thousands of people now dead. And while it is further tragic that so many financial stressors accompany illness, the reality is that medical bills are the number one reason most debtors file for bankruptcy.

Recent data shows that while around 62% of bankruptcies are centered around medical bills, there are usually numerous other factors included, such as the loss of a job, crushing student loan debt, divorce, or other personal crises that can seriously affect finances. In terms of health insurance, premiums continue to rise far above any increases that would help consumers keep up with the cost of living.

It still remains to be seen how bad the financial carnage is post-COVID. Unemployment is expected to continue, and even further escalate, and the viral pandemic still continues on in the US—affecting nearly every aspect of our lives. It will be some time before the entire picture is clear regarding the undeniable economic downturn, but for now it is probably as easy as looking around or just talking to your friends, family, or neighbors.

You may also be experiencing financial distress due to the pandemic, whether you lost your job, had hours cut—or are trying to weather the storm with your own business. If you are being sued over medical bills, speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to enlist legal expertise in answering the lawsuit and preparing a defense. After consulting with your attorney, you may also decide that negotiating is an option.

Believe it or not, even at the last hour a creditor or debt collection agency may be happy to speak with you and cut a deal that is in your favor—allowing you to satisfy a debt at a highly discounted rate. This could make a huge difference, and mainly in helping you to fend off a default judgment. Unfortunately, a large percentage of defendants do nothing upon receiving a summons and complaint, and later find themselves stuck with wage garnishments, loss of property, and frozen checking accounts.

Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at [email protected].
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