Medical debt bankruptcy is filing bankruptcy due to medical bills. It is more common than most might imagine. According to a recent USA Today article, medical debt is the number one cause of filing bankruptcy in America. Sacramento is no different. It is a significant factor in forcing many bankruptcies.
The filing of a medical debt bankruptcy is normally due to factors beyond the filer's control. Namely, the filer's health. Getting medical treatment is not an optional cost. If you get sick you need to see a doctor. It's that simple.
As often is the case with a medical debt bankruptcy, insurance is partially to blame. Even those with medical insurance are not always fully covered. High deductibles cannot always be afforded. And when they can't, something has to give. Usually it's the patient's finances.
If personal savings were larger and more commonplace, perhaps such medical costs could be weathered. But they're not. Savings in America are bleak, and that's putting it mildly. The referenced USA Today story brings home this point. 69% of Americans have less than $1,000.00 in savings. The is a big factor in medical debt bankruptcy filings.
Fortunately for people who are forced into a medical debt bankruptcy, bankruptcy is effective eliminating the medical debt. As we all know, medical care is expensive, really expensive. That is why medical insurance is so costly. It is also why deductibles can be unaffordable. Without astronomical deductibles, premiums would be astronomical. But bankruptcy can eliminate medical bills. Medical bills are unsecured debts that can be discharge, or eliminated, in a bankruptcy.
Particularly problematic for those in need of a medical debt bankruptcy are medical bill collection practices. You would think medical bill collectors would be accommodating given the nature of the debt. But they are not. Some of the most aggressive collection measures are made by medical bill collectors. It's an unfortunate fact. Bankruptcy, though, is a tool that can eliminate that debt. It's something many in Sacramento might not expect to do. But it an option, and a good one if you need it.