There are tens of billions in outstanding medical bills currently in collections, affecting one in five American families.
For patients with little or no health insurance coverage, offers of medical credit cards with zero percent introductory interest have been growing to bridge the gap. In fact, between 2018 and 2020, families using specialty medical credit cards racked up over 23 billion dollars in medical debt.
Taking a card out to afford the high cost of medical care has only exacerbated financial problems for many. When higher interest starts to accrue and late fees are assessed, consumers may find that they are in way over their heads in medical debt and turn to bankruptcy for relief.
Not surprisingly, medical debt is plays a major role in bankruptcy filings. Medical credit card debt, hospital charges, health care provider fees and other health related expenses add up quickly, leaving many Americans with insurmountable debt.
Fortunately chapter 7 personal bankruptcy protection offers the chance at a clean slate, where credit card debt and medical debt are dischargeable allowing individuals and families to recover financially. For those with higher incomes and assets who may not qualify for chapter 7 relief, a repayment plan under chapter 13 can provide protection from creditors and eventual discharge of unsecured debt such as credit card and medical debt not paid during the repayment period.
When medical debt is a problem, it is worthwhile to discuss your situation with an experienced bankruptcy lawyer who can advise you on the best strategy to pursue for your unique situation. Bankruptcy protection may be an option to alleviate debt and eventual financial recovery. Contact Peoria Illinois lawyer Charles E. Covey for more information at 309-674-8125.