For Tennessee residents and others across the country, medical debt is the most common reason to file for bankruptcy. Of those who have insurance and are under age 65, approximately 20 percent say that they have trouble paying medical costs. Although seniors are most likely to have health issues, members of Generation X have the highest levels of medical debt. A person in this generation has a medical debt load of $19,670 on average.
In addition to their health care debt, this generation is also dealing with higher levels of credit card debt. They may also have student loan and mortgage payments to make. Anyone might be able to lower their health care costs by purchasing a policy with the lowest deductibles and other fees. Of course, this may mean paying a slightly higher premium each month compared to the least expensive option available.
Individuals may also be able to lower their bills by taking a closer look at their policy. Failing to get a referral or going to a doctor outside of a provider network may increase the bill for services rendered. Individuals can call their insurance company to ask questions about anything that they don’t understand. In addition to having good coverage, individuals should create an emergency fund to handle unexpected health care costs.
Those who are seeking debt relief may find it by filing for bankruptcy. It might be possible to have medical, credit card and other types of debt discharged. Those who file for Chapter 13 protection may be allowed to keep property such as a house or car during the repayment period. Furthermore, creditors are generally not allowed to contact debtors during an ongoing bankruptcy case. Collection actions such as a foreclosure or repossession may also be prohibited during an ongoing bankruptcy case.
