Quite a few Illinois residents are currently struggling to make ends meet. Some have been in this position for a while, while, for others, the economic difficulties are relatively new. Health problems are believed to contribute to a lot of people’s monetary issues. In fact, medical debt is said to be the main reason most people choose to file for Chapter 7 bankruptcy.
According to a recent news article, roughly 66.5% of all bankruptcy filings were pursued because of health-related reasons. Not only were these petitioners facing extreme amounts of medical debt, but they also lost wages due to being unable to work because of their failing health. The American Journal of Public Health says that around 530,000 families seek bankruptcy protection in any given year because of medical-related debts. Why?
The medical debt crisis is linked to the medical insurance crisis. Too few Americans have access to affordable health care and/or decent health care insurance. While lawmakers have taken steps to offer coverage to everyone, it remains out of reach to a lot of people due to its cost. Only time will tell if changes to the health insurance industry will help more people get the care they need without breaking the bank.
Illinois residents who are faced with massive amounts of medical debt and who lack the means to pay their creditors may feel that their financial situations are hopeless. Chapter 7 bankruptcy protection was designed for people who truly cannot afford to meet their debt obligations. While pursuing bankruptcy may not be one’s first choice, there are times when going for it is better than allowing the debt to continue growing. Those who may be interested in seeking economic relief through bankruptcy can turn to legal counsel to see if it is an option for them.