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Broward County
954-566-9000
Palm Beach County
561-487-0200
Miami-Dade County
305-444-8660
Indian River County
772-564-1321
Your Road To A Better Future

How medical debt can lead to bankruptcy

| Jan 21, 2021 | Bankruptcy |

Everyone faces medical issues in his or her life to some degree. Unfortunately, the issues become even more stressful when it extends to family budgets. In many instances, insurance companies design their coverage to force a patient into a repayment situation with the company. This means that many families find themselves strapped with medical debt even when they are not necessarily facing health calamities, many times resulting in the need to file bankruptcy.

The crisis is not uncommon

According to multiple publications reporting on bankruptcy, as many as a third of all Americans have outstanding medical debt with over half of those individuals having defaulted on that debt. Some people file for bankruptcy, and some do not, but many individuals have fought a collection battle. In fact, a significant majority of all U.S. bankruptcies include some form of medical debt.

Avoiding medical care is not uncommon either

What this problem does for many individuals is encourage them to avoid seeking medical attention unless it is absolutely necessary. Many people have aches and pains that they do not address until the problem has manifested physically, which then requires attention that often cannot repair the damage. From this point on, a person can only manage his or her health condition instead of truly caring for it.

All Florida bankruptcy attorneys deal with this problem regularly, and they understand that bankruptcy is the only way out for many people who are suffering both physically and financially. And though it is not the answer for all, bankruptcy can assuredly be an effective method of protecting family assets, such as a home, when medical treatment facilities begin the collection process.