Some believe that the Covid19 pandemic could lead to a rise in personal bankruptcy among Americans grappling with reductions in income and unanticipated medical costs. Although the country is facing a largely unprecedented emergency, medical bankruptcy is not a new phenomenon; many Americans are forced to declare bankruptcy every year because of unexpected medical expenses.
Medical Bills Problematic for Insured and Uninsured Alike
One of the challenges many insured face is that their employer or individually purchased insurance come with hefty copays, co-insurance and high deductibles that can make any unexpected medical event break the bank. As Americans struggle to cover the premiums, many put off recommended tests or treatments landing some to the hospital when their luck runs out.
As many as 27 million Americans go without insurance because the premiums are out of reach. For the uninsured, going to the doctor is something to avoid with a trip to the hospital translating into tens of thousands of dollars of medical debt.
To make matters worse, those injured or sick enough to seek emergency care – insured or not – are typically unable to work. Many exhaust paid sick time or leave long before they recover leaving many families in a difficult financial situation to say the least.
Bankruptcy Relief for Unexpected Medical Expenses or Job Loss
Not surprisingly, medical debt is a strong driver of bankruptcy. Many who have been hit with medical bills have no choice but to seek bankruptcy relief. Fortunately, when Americans find themselves in a difficult financial situation, those with high debt and modest income may be able to discharge medical and even credit card debt in a chapter 7 bankruptcy so they can start anew.
Solutions are out there – it is important to research all avenues of debt relief which may include bankruptcy protection. If you have questions regarding personal bankruptcy when faced with unexpected medical bills, contact the Peoria bankruptcy law office of Charles E. Covey for more information at 309-674-8125.