In Tennessee, one of the most difficult types of debt to carry is medical debt. Most people do not have a choice about incurring this debt as it arises from unplanned medical issues. Nearly a third of American workers owe some sort of medical debt, and half of them have defaulted on it.
Even having health insurance does not prevent people from taking on medical debt as the premiums and deductibles have risen in recent years. Americans are spending more on health care, and it is hurting their bottom line. This impacts people across all income levels throughout the country.
Medical debt is often much worse than credit card debt because the debtor does not control the amount of the debt. Nearly three-quarters of Americans with this type of debt owe over $1,000. This is compounded by the fact that nearly half of the people in the country do not have the savings necessary to handle even a small unplanned expense. This makes many Americans afraid to even use their health insurance and hesitant to get care in an emergency. Much of the medical debt in this country results from unplanned emergencies in which individuals were left with large bills that they cannot hope to pay. The need to keep up with these payments eventually can drive many people past the brink of bankruptcy.
Medical debt can be discharged in a bankruptcy, and many people who owe money often find that they are left with no other choice. A bankruptcy attorney may explain the details of how the process can be used to discharge medical debts and the ramifications of bankruptcy. Of course, bankruptcy comes with a cost, and a lawyer could assist his or her client with the necessary filing so that he or she can get a fresh start free of medical debt.