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What can you do to manage overwhelming medical debt?

On Behalf of | Jun 4, 2021 | Bankruptcy |

These days many people in Indianapolis are facing steep medical bills these days. This is not a matter of failure it is simply a fact of life. Nevertheless, even if you have been fiscally responsible your whole life it only takes one major life event to cause financial upheaval. The following is some information on medical debt in the U.S. and how to combat it.

Medical debt in the U.S.

According to data obtained by Credit Karma, in 2020 the number of Americans carrying medical debt spiked, especially because many lost medical insurance if their job was furloughed or they were laid off. According to Credit Karma, medical debt increased by $2.8 billion — 6.5% — from the end of May 2020 to the end of March 2021. Past due medical debt increased by almost 9% from $19.6 million to $21.4 million. Many people facing such financial crises are considering filing for bankruptcy.

Ways to resolve medical debt obligations

There are a variety of ways you can resolve medical debt obligations. First, examine your medical bill. There may be items your insurance is billing for that they should cover. You may need to dispute the bill with your insurer. Second, determine whether you qualify for Medicaid. Sometimes Medicaid covers medical bills retroactively. Third, try negotiating with your insurer to reach an amount that you can afford to pay. Fourth, consider consolidating your medical debt. This may provide you with debt that has better terms and makes the process easier by requiring you to make just a single payment each month. Finally, consider filing for bankruptcy. Bankruptcy can be a responsible way to address debts that you simply cannot afford.

Learn more about bankruptcy in Indiana

Filing for bankruptcy may seem extreme, but facing unmanageable medical debt is even more extreme. For this reason, those with overwhelming medical debt should not discount filing for bankruptcy as a viable option for obtaining debt relief. This post is for educational purposes only and does not contain legal advice. Our firm’s webpage on bankruptcy may be a useful resource for those who want to learn more about this topic.