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Unpaid medical debt overwhelms millions of Americans

| Oct 6, 2020 | Chapter 7 Bankruptcy

If you have been laid off and are without health insurance in Miami, even a simple visit to the doctor can lead to a hefty medical bill that you have no way of paying. And, if this is your situation, you are not alone.

Unpaid medical debt a major issue for Americans

According to an analysis in August by Credit Karma, the almost 20 million members of the consumer finance company had a total of $45 billion in past-due medical debt that was currently in collections. This averaged out to $2,200 in unpaid medical debt per member.

Another survey on medical debt in America conducted by Debt.com found that 56% of respondents from June 17 to July 6 had medical bills sent to collections. Of these, two-thirds owed less than $5,000 in medical debt while 5% owed over $50,000 in medical debt.

This is significant, as almost 50% of Americans do not have $400 in savings should in unexpected emergency come up. Combine this with job loss and other debts, and it is easy to see how many people these days are in dire financial straits

Bankruptcy is a viable means for addressing unpaid debt

If you are facing medical debt that you simply cannot pay back, and you are receiving calls from debt collectors on a daily basis, the situation may seem hopeless. However, there are options available to you. One of these options is filing for Chapter 7 bankruptcy.

Chapter 7 bankruptcy is nothing to be afraid of. In the Chapter 7 bankruptcy process, you will not lose all your possessions and be left destitute. Some, but not all, of your assets will be liquidated and used to pay off qualifying debts. After this, with some exceptions, your remaining debts will be discharged setting the stage for a brighter financial future.