Guiding You Toward A Brighter Financial Future

3 medical issues that could quickly lead to bankruptcy

On Behalf of | Apr 12, 2024 | Bankruptcy

Financial insolvency can develop slowly as someone accrues debt due to unsustainable spending habits. Far more commonly, however, people who have spent a lifetime behaving responsibly could be at risk of aggressive collection activity and similar financial challenges after a single unexpected experience.

Medical issues are one of the top causes of modern bankruptcy filings. Even those with insurance can end up developing a massive collection of medical bills, especially if their policy has a high deductible or co-insurance requirements. For example, someone who has long enjoyed good health could find themselves at risk of insolvency within a matter of weeks due to one of these three medical issues mentioned below.

Major car crash injuries

Motor vehicle collisions are a leading cause of severe injury and death, and insurance isn’t always available to help people address collision expenses. Tennessee is actually one of the worst states in the country for uninsured drivers. According to 2019 data, roughly 20.9% of motorists may not have insurance on their vehicles at any given time. Those hurt by uninsured drivers may have tens of thousands in expenses and no way to cover those bills.

A cancer diagnosis

Depending on the type of cancer someone develops and the stage it has reached by the time of their diagnosis, cancer itself can prove to be quite debilitating. The treatment that people must undergo after a cancer diagnosis and also drastically alter someone’s quality of life. Many people cannot work while undergoing treatment for cancer. At the same time, they may require treatment that is not eligible for complete insurance coverage. Many people who survive cancer must then overcome massive medical debts.

A progressive condition

People can be healthy and happy for years only to start showing signs of a progressive medical issue with little forewarning.  Muscular dystrophy, multiple sclerosis and other medical concerns can have sudden onset in the middle of someone’s life. These conditions affect someone’s ability to work, their overall quality of life and their household dynamics.

Healthcare providers can quickly become very aggressive about collections, especially after someone completes treatment. Many people find themselves struggling with insurmountable medical debts due to no real faults of their own. As such, filing personal bankruptcy can be a reasonable solution for debts that might otherwise leave someone struggling financially for years.