Medical Bills: A Leading Cause of U.S. Bankruptcies

NBC News recently reported that 1.7 million American households will be forced into bankruptcy this year due to medical expenses. This makes medical bills the biggest cause of bankruptcy petitions in the country, a bigger cause than unpaid credit card bills or mortgage defaults. According to the news report, even those who have health insurance are not immune to the runaway expenses involved with a medical emergency. The financial website, Nerdwallet, which is devoted to providing unbiased information to consumers, has estimated that close to 10 million people with health insurance will still incur medical expenses that they cannot pay. Many of these people have high-deductible health plans that call for large sums of out-of-pocket expenses to be paid before their plans kick in. Nerdwallet's data is based on information gathered from the U.S. Census, Centers for Disease Control, and other national agencies.

Bankruptcies based on medical bills account for three out of every five petitions that are filed in the nation. A Nerdwallet representative stated that 11 million people in this country will increase their credit card debt to pay for medical expenses while 15 million will use up all of their savings to pay for medical expenses. Three states will account for a fourth of all the medical bill bankruptcies in this country: California, Illinois, and Florida. Overall, one in every five adults in the U.S. will struggle financially to pay bills stemming from a medical problem.

Bankruptcy Attorney in Irvine, California

Deciding to file for a personal bankruptcy can be an agonizing matter. The more knowledge and information you have about the subject as it pertains to your situation, the better off you will be in terms of making the right decision. Ensuring that you understand all the ramifications and consequences, both positive and negative, is vital. At Peter Rasla & Associates, PLC, you can get outstanding assistance from a legal professional who handles bankruptcy cases of all sizes and shapes on a daily basis.

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