Personal bankruptcy protection is a resource for consumers struggling with overwhelming medical debt to consider. An academic study from earlier this year revealed that 66.5% of bankruptcies were related to medical debt. It is estimated that 530,000 Americans file for bankruptcy annually because of medical bills and medical issues, including the inability to work because of medical concerns. Other reasons consumers turn to personal bankruptcy protection include an inability to pay their mortgage, student loans and other circumstances.
Some consumers filing for personal bankruptcy protection turn to the option because insurance coverage is inadequate or they do not have adequate emergency funds and resources to cover emergencies that come up, including medical or others. Unexpected medical emergencies can quickly place consumers in a difficult position which is why personal bankruptcy protections and options are available to help struggling consumers enjoy debt relief from medical bills or other types of debt they may have.
There are different types of personal bankruptcy that can help struggling consumers in different situations. Chapter 13 bankruptcy can help struggling consumers reorganize their debt to repay it over time. Another option is Chapter 7 bankruptcy which allows struggling consumers to liquidate their assets to repay creditors. There are different ways to qualify for different personal bankruptcy options and different options are better suited for different situations so consumers considering bankruptcy should be familiar with their options.
Personal bankruptcy protections can help provide consumers with a fresh financial start and relief from medical debt and other overwhelming debt. It is important for those struggling with medical debt to be familiar with their different bankruptcy choices and how bankruptcy options may be able to help them.