Medical debt can be financially debilitating, especially when your health keeps you out of work. You may find a solution to your troubles in bankruptcy, and you certainly won’t be alone.
Over 66% of all filings are due to some kind of medical problem. That works out to over 530,000 families that choose bankruptcy every year to deal with their care-related financial woes. And while medical debt can strike at any age, older generations are making up more and more of those numbers.
Americans from the age of 55 to 64 have seen an increase in bankruptcy filings, growing 66% in recent years. But ages 65 to 74 have seen an enormous rise, rocketing over 200% in the same time frame. Many older adults are giving the same reason for their woes, and that’s ever-growing medical bills.
Six out of 10 people that are 65 or older report that debt accrued from medical issues is the main reason they’re seeking shelter in bankruptcy. More health issues, coupled with dwindling resources now that you’re out of the job market, can quickly spell trouble.
40% of Americans don’t have the savings to handle a $1,000 emergency cost, and it can be tough to dig out of a hole once you’re in it. When your ailments keep you out of work, or you’re no longer in the workforce, there are limited options ahead of you.
You could get a large chunk of your debts erased, but it may not apply to everything you’re facing. Make sure you understand the protections you could discover under bankruptcy, and a path to relief could be ahead.