The Attorneys Of Stewart Sorice Farrell Finoli And Cavanaugh LLC

Most individuals who file for bankruptcy have high medical debts

On Behalf of | Jul 12, 2019 | Bankruptcy |

Some individuals in Pennsylvania who find themselves in debt do so because they have lived beyond their means. Then there are those who tried their hardest to be as responsible as possible with their finances — and still ended up drowning in debt. There are some trends when it comes to why individuals end up filing for bankruptcy.

The study, which was published in the American Journal of Public Health earlier this year, captures how only a little more than 44% of bankruptcies are filed because individuals live beyond their means. The researchers found that at least 45% of those who file for bankruptcy end up doing so because they find themselves tied up in unaffordable mortgages. A staggering nearly 67% of all bankruptcy cases are filed because of medical debt.

Researchers working on this latest study determined that individuals who have health insurance aren’t always able to avoid ending up in debt for medical expenses either. Many individuals, they found, have health care coverage, but still struggle to pay their out-of-pocket expenses.

Many individuals further complicate matters when they put their medical debt on credit cards or take on personal loans to pay their bills. They then struggle to pay back the money that they owe.

It’s possible for individuals to not have a medical emergency devastate their finances. They can accomplish this by having a year’s worth of savings in reserve as a “rainy day fund” to pay for such bills. They can also be cautious and only see providers in-network with their insurance. They can take out lower deductible policies as well. It’s hard to plan for emergency medical events that often cause individuals to go into debt though.

If you’re struggling with medical or any other type of debt, then you may be able to negotiate with your creditors to reduce your balance owed. They may even allow you to make payments. If you’re looking for more immediate relief of your financial woes, then a bankruptcy attorney here in Greensburg can help. They can advise you of legitimate ways that you can address your debt.