Bankruptcies on the Rise Due to Medical Debts
Health care spending in America is expected to reach a startling $4.8 trillion by 2021. That number is up from $2.6 trillion in 2012, and only $75 billion in 1970. With medical expenses rising so rapidly in the United States, it’s no wonder that the number of Americans unable to afford health care is rising with them.
Many assume that if they are covered by health insurance, they will be protected from significant medical costs in the event of an emergency. Unfortunately, many still find themselves with saddled with serious debt after a trip to the hospital. Of the millions of Americans unable to keep up with their medical bills, nearly 10 million had year-round medical coverage at the time.
Medical debts leading to bankruptcy
Outranking both unpaid credit cards and unpaid mortgages, medical debts have become the number one cause of bankruptcy filings in the United States. It is estimated that nearly three in five bankruptcies are filed due to medical debt. An unnerving one in five Americans are struggling with crippling medical debts, and of those, nearly 2 million will be forced to file for bankruptcy as a result.
How to get medical debt discharged
Medical bills are an unsecured, non-priority debt. An unsecured debt is one that is not backed up by an underlying asset, such as a house or car. A non-priority debt is not collected until after all other debts have been settled. This means that if you choose to file for bankruptcy, medical bills are repaid after everything else. The majority of medical debt gets discharged when filing for bankruptcy, and debtors end up paying pennies on the dollar.
More Americans than ever are struggling with rising medical costs. If you qualify, there is no limit to how much medical debt can be discharged.
If you find yourself stricken with medical debts that you cannot pay, call DeLuca and Associates today at (702) 252-4673. Schedule a free consultation today to see if filing for a chapter 7 or chapter 13 bankruptcy in Las Vegas is your best option.
