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Medical expenses a significant cause of bankruptcy filings

People in Tennessee and across the country can be affected by medical expenses without warning. Even if they have a good amount of insurance coverage, if there are medical bills for surgical procedures, a long stay in the hospital, as well as aftercare, there can be massive costs that people simply can't pay. This is not an isolated incident and a study has shown that almost two million people were forced to file for bankruptcy due to medical bills in 2013 alone. This made medical expenses the top reason for bankruptcy filings.

The number of people who filed for bankruptcy as a result of medical expenses was far higher than those who filed because of credit card bills or mortgage issues. This information comes from various sources. Even those who didn't use bankruptcy as an option were facing financial woes because of medical costs. Over 20 percent of the population of people between the ages of 19 and 64 are having issues with health care costs.

This information comes as no surprise, given the rising costs of medical care and accumulated hospital bills and the fact that the average family in America brings home $50,000 per year. Those who have medical insurance are even facing high medical bills and the need to consider bankruptcy because of medical costs that are not covered by insurance. As a result, the idea that the new medical care mandate and cheaper insurance is going to help remedy the situation simply may never come to pass. Those who have an emergency situation are likely to need more than the bare bones care that many insurance plans provide.

Many people who are faced with the prospect of having medical care or not having it due to money concerns will use their credit cards to pay their medical expenses, which only places them in a different kind of hole. Rather than the medical expenses from the hospitals and doctors, they will have credit card bills with the accompanying high interest rates. Filing for bankruptcy might be a frightening prospect that many believe is an effort to run away from their debts. In reality, it's an option for debt elimination that can be quite effective with help from a legal professional who is experienced in these kinds of cases.

Source: CNBC, "Medical Bills Are the Biggest Cause of U.S. Bankruptcies: Study," accessed on Dec. 16, 2014

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

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