Bankruptcy may be option re Tennessee residents’ medical debt

Bankruptcy may be option re Tennessee residents’ medical debt

On Behalf of | Apr 11, 2016 | Debt Management, Firm News

It is an unfortunate reality that many Tennessee residents may avoid seeking medical treatment because they cannot afford it. Medical bills can often lead to financial struggles, and in many cases, individuals may just be unable to fully pay their balances. As a result, their debt could be put in collections, and their finances could be even more negatively affected. However, bankruptcy may be able to help.

It was recently reported that 43 million citizens have debts that are in collections. Of those individuals, 15 million have only medical debt. This type of debt makes up more than half of credit report debt, and on average, the balances pan out to approximately $580 per person. However, it is no secret that many individuals face significantly more debt than that amount.

There certainly are steps that individuals could take that may help lessen their balances, but in many cases, balances may be too high to contend with on their own. Making payments on time, understanding insurance policies and coverage and discussing potential payment plans with providers may be useful, but even the most diligent individual could fall behind. As a result, researching bankruptcy options may be a route to consider.

Bankruptcy may be able to help Tennessee residents discharge certain debts in order to allow them to get back on track. Chapter 7 or Chapter 13 fit different circumstances, and therefore, interested parties may wish to determine which avenue may be best for them. Additionally, they may wish to discuss their particular situations with an experienced bankruptcy attorney in order to gain personalized insight.

Source: kob.com, “Experts Warn Medical Debt Could Greatly Damage Credit“, March 30, 2016