Chapter 7 bankruptcy may help with medical debt in Tennessee

Chapter 7 bankruptcy may help with medical debt in Tennessee

| Dec 17, 2014 | Chapter 7, Firm News

Having a considerable amount of debt can be a point of stress for many Tennessee residents. More stress may be added to the situation if some of that debt has been accumulated due to medical expenses. Some individuals may attempt to avoid seeking medical attention in order to evade more debt, but this solution is not a true solution at all. Individuals may find comfort in knowing that there are options such as Chapter 7 bankruptcy that may be able to help — and by understanding that they are not alone.

It was recently reported that a considerable number of individuals with credit records also have medical debt. Approximately 43 million individuals in the United States have accumulated medical debt. On average, an individual who is past due on medical payments has over $1,700 in such debt. The amount of debt continues to increase for parties who may also have other forms of debt with which to contend.

For many parties, understanding medical expenses can be difficult, and misunderstanding could contribute to outstanding balances. At times, there can be conflicting information from hospitals and insurance companies, and patients are uncertain who and what they should pay. As a result, debt accumulates and has a negative effect on credit scores.

It is not uncommon for Tennessee residents to have some form of medical debt. Luckily, that debt may be able to be discharged under Chapter 7 bankruptcy. Depending on the exact circumstances of an individual situation, a party may be able to qualify for this option. Information on this type of bankruptcy may prove useful to parties who are looking to become more financially secure.

Source: itemlive.com, “Nearly 20 percent in US have unpaid health debts”, Dec. 15, 2014