Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I buy a home after bankruptcy?”
A recent survey confirmed what many experts have long said: rising medical bills are increasingly sinking American families under insurmountable levels of debt. The study found that health care expenses are the number one cause of bankruptcy filings for Americans, outpacing credit card debt and even mortgage trouble.
An organization named NerdWallet Health says that it analyzed data from the U.S. Census Bureau, Centers for Disease Control and Prevention and the federal bankruptcy court system to arrive at its conclusion about the primary motivators for filing for bankruptcy protection. The group said it was not surprised to find that health care costs were a major burden to American families, but was surprised to see just how much harm medical bills could cause.
According to data gathered by the company, an estimated 1.7 million people will file or bankruptcy protection this coming year. Of this group, the most common reason for deciding to file for bankruptcy is high levels of medical debt. In fact, 60 percent of all bankruptcy filings are due to unsustainably high levels of medical debt.
The company found that beyond those who would be forced to file for bankruptcy protection, another 56 million adults would struggle with health care-related bills, a number that amounts to more than 20 percent of the adult population. On average, medically bankrupt families had $17,943 in out-of-pocket expenses.
Another alarming conclusion from the survey is that medical bills were equally problematic for those families with insurance. Though many might assume that medical bills result in bankruptcy only for those without insurance, the survey showed that is not the case. The results estimate that nearly 10 million adults with year-round health insurance coverage will still accumulate medical bills that they cannot afford to pay off. The reason is that high-deductible insurance plans are often costlier than many Americans realize and can create an unsustainable burden in the event that someone suffers a serious and sudden illness or injury. Another survey conducted back in 2009 said that 78 percent of the people filing for bankruptcy due to medical bills actually had health insurance at the time.
The data further bolsters the contention by many that except for the truly wealthy, most families are only one serious illness away from financial ruin. That’s because if an illness is long enough or expensive enough it can even exhaust private insurance coverage, leaving ordinary families struggling to pay what can sometimes be hundreds of thousands of dollars in debt.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.