Like many people in New Jersey, others across the country believe that most bankruptcy filings come as a result of high debt amounts that accumulated when people engaged in such behavior as obtaining credit cards. However, one recent report notes, as many as three out of every five personal bankruptcy filings in our nation come from medial debt. This number represents a small decrease in the number of such filings this year.
The report, which many in New Jersey may find interesting, notes that even when a person has year-round medical insurance coverage, they are more likely to file a personal bankruptcy due to medical bills than for any other reason. This is because many find that they have high deductible amounts that can range in the amount of $5,000-$10,000. This is a significant amount to those in our nation who average only $50,000 per year for a family.
It is unclear if new healthcare reforms will be able to help those with medical bills. What is known is that many people take on additional debts as a result of illness. These debts, in combination with those owed for medication and hospital stays, may be responsibly confronted through a personal bankruptcy.
Filing for a personal bankruptcy often means that a person in New Jersey will be able to discharge many -- if not all -- of their unsecured debts. This is good news for those who face not only mounting economic challenges but also serious illness. As a result of a filing of a bankruptcy, those in such situations may find that they are able to work towards a full financial recovery more quickly, without the debts that have held them down as they struggle to overcome a medical illness.
Source: today.com, "Biggest cause of personal bankruptcy: Medical bills," Dan Mangan, June 25, 2013