Medical costs have skyrocketed in recent years, a factor that has left many Illinois residents encumbered by debt.
It shouldn’t come as a surprise to learn that researchers published a 2019 study in the American Journal of Public Health listing medical bills as one of the leading reasons why individuals end up filing for bankruptcy.
What the statistics say about medical debt and bankruptcy
The study’s researchers determined that 67% of individuals who file for bankruptcy do so because they’re drowning in medical bills. That same data reveals how at least 45% of these debtors also file for bankruptcy because they’re struggling to cover their mortgages. That research also shows how at least 44% of bankruptcy filers live beyond their means.
Insurance coverage doesn’t always stave off bankruptcy
Many individuals wrongly assume that the only people who file for bankruptcy due to medical debt are those without insurance.
The truth is that insurance coverage can be quite costly, and out-of-pocket expenses can be as well. Emergencies may occur, or necessities may arise that aren’t readily covered by insurance. Many individuals don’t have money saved up to tap into and thus take out loans or pay with credit cards and then struggle in paying back what they owe.
There are many options for tackling your medical debt
Medical debt can quickly compound other outstanding financial obligations. There are many different debt relief options that you should consider to alleviate some of the stress that you’re facing. Bankruptcy is one of them.
A bankruptcy attorney here in McHenry will want to learn more about your assets, liabilities and income to gain a better perspective on your ability to pay before advising you of debt relief options available to you in Illinois.