Unexpected events can easily affect someone’s well-being and financial stability. Although many have life insurance to protect their families, many Americans may not have a safety net in place in the event of an injury or illness that prevents them from earning income.
Even those who are fortunate enough to have employer-sponsored disability benefits, such as group short term and long term disability insurance, often find it is not enough. The typical plan only covers 40 to 60 percent of an employee’s base salary, leaving many bills unpaid sometimes stretching into weeks and months.
When someone is hurt or becomes ill, many accumulate substantial medical debt. Not only do many insurance plans come with a hefty co-payment, they often only cover a percentage of what is charged if a procedure is covered at all. Many in this situation who have limited savings will often turn to credit cards to bridge the gap. By the time it is all said and done, many who have struggled with an injury or illness are looking at insurmountable medical and credit card debt.
If you or a family member has accumulated unsecured debt such as medical bills or credit card debt, bankruptcy protection may be a good strategy for you. Chapter 7 bankruptcy offers someone struggling with a difficult financial situation an opportunity to discharge unsecured debt so they get a fresh start. A Chapter 13 will put debt on a payment plan that you can afford.
Bankruptcy protection is a strategy that individuals and families could benefit from after an unexpected illness or injury. Contact Peoria bankruptcy attorney Charles E. Covey to discuss your situation today at 309-674-8125.