A Record Number of Americans Have Health Coverage Yet Medical Debt Remains a Leading Bankruptcy Factor
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According to the United States Census Bureau, 8.6% of Americans — 28 million people — did not have health insurance at any point last year.
Even with a record number of 91.4% of Americans — over 300 million people — covered by private, employment-based, or public health insurance, a new study from academic researchers found that 66.5% of all bankruptcies were still tied to medical issues last year.
The leading factors that led to overwhelming medical debt were split between the high costs of medical care, insufficient insurance coverage, and the time taken away from work to undergo medical care.
These combined factors led to an estimated 530,000 families turning to bankruptcy last year because of medical issues and bills, the research found.
Our experienced Tucson bankruptcy attorney, Eric Ollason, knows all too well how medical debt impacts our clients’ lives, and provides real solutions that allow individuals to pursue bankruptcy in Arizona, so they can focus on their well-being — not their crushing medical debt.
Here is how we may be able to help you, too.
Can I Erase Just My Medical Debt Through Bankruptcy in Arizona?
While the increase in health insurance coverage in the U.S. has helped millions of Americans access the healthcare they need to counter injuries, chronic illnesses, and diseases, what most people do not realize is that their health insurance may not be enough to protect them from financial ruin.
Even if you possess health insurance, costs that are not covered, such as copayments and procedures, can leave you on the hook for unexpected and overwhelming expenses.
Because medical bills qualify as unsecured debts, they can be discharged in bankruptcy. However, you cannot file bankruptcy exclusively on medical debt and leave other bills out of the equation. You must report everything you owe when filing for bankruptcy.
When you file for bankruptcy, the automatic stay begins and forces creditors to halt any attempts to collect these debts through harassing collection attempts, garnishments, or lawsuits.
Recovering from overwhelming medical debt can take place with the work of a trustworthy and personal Arizona bankruptcy attorney. We help our clients obtain a fresh financial start by filing either a Chapter 7 or Chapter 13 bankruptcy for medical bills.
Our affordable Arizona bankruptcy law firm is fully prepared to guide you through the legal process by evaluating your debts and advising you on the best actions for your unique situation.
Contact Our Skilled Arizona Bankruptcy Attorney Today to Schedule a Free Assessment
If you have questions about how filing for bankruptcy in Arizona can give you a fresh financial start, contact our experienced bankruptcy attorney in Pima County, Eric Ollason, to learn more about your legal rights and options by calling (520) 791-2707 to schedule a free consultation today.
