How can a long-term illness lead to bankruptcy?
Nobody expects a long-term illness to drain them financially, yet too many people find themselves in such scenarios when medical bills start piling up.
Add in income lost due to missed work days, and it isn’t hard for someone with a chronic illness to end up facing bankruptcy.
The financial implications of a long-term illness
Chronic illness can drastically impact a person’s finances. Many people with long-term diseases face mounting medical bills from doctor visits, regular hospital stays, medicine or other treatments. Additionally, individuals who suffer from chronic conditions may have to take time away from work and lose wages. This can often lead to financial challenges if the individual cannot return to their job due to physical limitations or the need for additional care.
It is well known that medical expenses are a significant cause of financial hardship in the United States. In fact, they are cited as the reason 62% of Americans declare bankruptcy. Even individuals with health insurance face high out-of-pocket costs due to skyrocketing deductible rates and copays. The situation can quickly become dire if a family has limited resources and cannot cover these expenses.
Filing for bankruptcy can provide a much-needed reprieve to those struggling with medical debt. By filing for either Chapter 7 or Chapter 13 bankruptcy, individuals can have their existing debts discharged or reorganized according to the provisions laid out in the bankruptcy plan. This can provide immediate relief from overwhelming medical bills and offer long-term protection from creditors and collection agencies.
Filing for bankruptcy may seem daunting, but it can be a viable option for getting back on track for those weighed down by medical debt.