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  • Medical Bills Are Top Cause of Debt, Bankruptcy Filings in U.S.

    A study compiled by the AMA has found that more than 60 percent of bankruptcy filings in the U.S. are triggered in some way by excessive medical bills and debt.

    A study compiled by the AMA has found that more than 60 percent of bankruptcy filings in the U.S. are triggered in some way by excessive medical bills and debt.

    While various types of situations, including divorce or loss of a job, can bury people in debt, a recently published study compiled by the American Medical Association has found that more than 60 percent of bankruptcy filings in the U.S. are triggered in some way by excessive medical bills and debt. According to the study’s findings:

    • Individuals who filed for bankruptcy to relieve themselves of medical debts most commonly included homeowners who were between 30 and 50 years old, who were middle class and who had a college education.
    • Medical debt was typically accumulated when individuals had a medical condition that prevented them from working or when the condition required extensive, expensive treatments.
    • Even when individuals had health insurance, they still faced the possibility of accumulating massive amounts of medical debt due to a variety of factors, some of which include expensive deductibles and co-pays, costly prescriptions and bills stemming from having to visit out-of-network specialists.

    Bankruptcy Can Alleviate Medical Debt

    There are a number of different options for debt relief for individuals who are overwhelmed by medical bills and other debt. While debt consolidation or debt settlement may be a possible option for some, in many cases, borrowers will need debt relief that is further reaching. For these individuals, Chapter 7 or Chapter 13 bankruptcy may be the best solution to obtaining the financial fresh start they need.

    While Chapter 13 bankruptcy will help struggling borrowers develop a repayment plan to pay off their debt over the course of three to five years, with Chapter 7 bankruptcy, borrowers will liquidate some of their assets to pay off creditors, and much of their existing debt (including medical debt, credit card debt, etc.) will be discharged.

    If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (303) 730-8819.

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