Debt can be experienced at any age. In fact, due to the rising cost in education, a large percentage of young adults carry with them significant debt due to student loans. While this form of debt is burdensome, it is not very easily erased to debt relief options, such as bankruptcy. What’s even more surprising, this isn’t the most concerning form of debt that leads to individuals in Kentucky and other states across the nation to file for bankruptcy. The most looming form of debt for an individual or family is medical debt.
The top reason to file for bankruptcy
Currently, student loan debt is at a record high with Americans holding collectively $1.6 trillion in debt. But this financial burden is not the ultimate reason that drives an individual to file for bankruptcy. Hefty medical bills are frequently tied to the reason for seeking this debt relief option.
A recent study found that roughly 67% of all bankruptcies filed in the U.S. were due to medical issues. This means that a bankruptcy filing was either due to the high costs related to the care, the time they had to spend away from work or a combination of both. Furthermore, it was found that around 530,000 have to turn to bankruptcy each year because of medical debt.
Chapter 7 bankruptcy as a solution
When medical debt gets overwhelming, impacting an individual or family in all facets of their lives, it may be necessary to consider what options one has to discharge this debt. A Chapter 7 bankruptcy could help eliminate unsecured debt, such as medical bills.
Because a medical condition could hit at any point, many are not prepared to handle everything that comes with treating and recovering from such a disease. Medical bills can quickly add up, consuming most of ones income. This debt can make it difficult, and in some cases, impossible to lead a normal life. This is when it is important to consider what options one has when it comes to addressing this type of debt and what options one might have to better manage it or even get rid of it altogether.