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Medical debt now the leading cause of bankruptcy filings

On Behalf of | Nov 22, 2021 | Chapter 7 Bankruptcy

When your debt begins to spiral out of control in Florida, it may happen for any number of different reasons. However, if you are like most Americans facing mounting piles of debt, it may be the result of unanticipated medical expenses.

According to Fox Business, medical debt has become the leading cause of modern bankruptcy filings.

Accruing medical debt

Studies show that almost one out of every five Americans has medical debt that has gone to collections. When medical bills go unpaid, the interest compiles, making it increasingly difficult to dig yourself out of debt. Having too much medical debt may also make you think twice before seeking medical care, but this may have far-reaching consequences.

Reducing medical debt

If your medical bills start becoming insurmountable, there are a few things you might consider doing to help make them more manageable. First, consider asking your health insurance provider to supply you with a full explanation of your benefits and coverage. Second, double-check all your medical bills for errors. Upcoding and overbilling are common in health care, and they might involve health care providers charging you for services your insurance should have covered.

It may also benefit you to call your hospital’s billing department and see if they are willing to work with you. For example, you may be able to request a discount in exchange for paying off all your debt at once. Finally, you may want to do some research and see if you qualify for financial assistance under the Affordable Care Act.

Sometimes, you may find that health care providers are unwilling to work with you or reduce the amount you owe. Under these circumstances, you may want to consider other ways of regaining control over your finances, such as through filing for bankruptcy.

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