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Medical debt responsible for many bankruptcies

According to the Kaiser Family Foundation, more than 25 of adults throughout the United States have trouble paying their medical bills. In many cases, this results in Florida residents filing for bankruptcy even if they have insurance. In 2014, it was estimated that 40 percent of Americans had medical debt of some kind.

A 2016 report from the New York Times found that 20 percent of Americans under age 65 with health insurance struggled to pay medical bills. Of those, 42 percent said that they had to take a second job to keep up with medical debt while 63 percent said that they used up most or all of their savings to pay itt. One reason why Americans may have trouble paying medical debt is because of a lack of money in the bank. A survey from GoBankingRates found that 34 percent of those surveyed had no money saved while 69 percent had $1,000 or less.

Ideally, an individual will have three to six months worth of living expenses saved up. Those who lack this emergency fund may be able to create one by sticking to a budget that limits spending on items that aren’t essential. Other steps may include taking on a roommate, selling a vehicle or getting a second job.

Individuals who are seeking debt relief may wish to file for Chapter 13 bankruptcy. Doing so may put a stop to creditor phone calls, collection letters and wage garnishment. It may also put at least a temporary end to a repossession or a foreclosure. An lawyer can outline the eligibility requirements for this chapter.

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