The Financial Impact of Unpaid Medical Bills

 Posted on July 10, 2014 in Bankruptcy

Every year people suffer from medical conditions and injuries that leave them with much more than scars. They are also left with insurmountable bills. These bills can quickly pile up over time and become overwhelming. In the end, filing for a Texas bankruptcy may be the best option for financial recovery.

According to a study published by CNBC, almost 2 million people filed for bankruptcy in 2013 as a direct result of unpaid medical bills. And while it is easy to see how this can happen to someone without health insurance, the truth is that it can happen to anyone.

In 2013 nearly 10 million insured American adults had more medical bills from that year than they could pay off. Insurance plans have increasingly high deductibles and leave members with up to $10,000 in out of pocket expenses.

The rise in bankruptcies due to medical debt can be compounded by other issues as well. When an unexpected cost arises, often times people have no other choice but to pay with credit cards. Yet when paid with credit, interest must be taken into account as well, thus making large bills even larger. Consider the following statistics published by the National Patient Advocacy Foundation:

• Medical expenses are a contributing factor in 62 percent of bankruptcies;

• In 41.8 percent of cases, the person filing could designate a specific health issue;

• 54.9 percent of bankruptcy filers specifically cited medical costs as a problem; and

• 37.8 percent of people stated income loss due to illness as a contributing factor.

Texas bankruptcies, due to medical debt, are on the rise. Medical emergencies are by definition not planned, and therefore it is impossible to allocate finances in advance. If you have accrued significant debt due to unpaid medical bills, it is important to consult with an experienced San Antonio bankruptcy attorney to assess your options. Located in the San Antonio area and serving the surrounding area, the Law Offices of Chance M. McGhee provide all clients with professional bankruptcy services.