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Medical debt is an ongoing problem for Hoosier families

On Behalf of | Aug 2, 2021 | Bankruptcy |

According to a recent report from the Indiana Institute for Working Families, Indiana families continue to struggle under the weight of medical debt.

The report, which is based on a survey of residents from different backgrounds and parts of the state, showed that of the 5,882 surveyed, almost half, 2,769, said that that they had medical debt.

Of those with this type of debt, most were dealing with significant bills of over $1,000. Many had debts of over $10,000.

Interestingly, although fewer of those surveyed reported having automobile loans, the balances on these loans were much higher. The vast majority had debts of at least $1,000, and over 1 out of 3 reported debts of higher than $10,000.

According to the report, medical bills were also the most likely type of debt to land a family in collections. Of all debts in collections, medical bills accounted for over 35%. Credit card bills also accounted for 25% of the debts in collections, while delinquent student loans accounted for close to 20% of debts.

There are options for Indianapolis residents who are struggling with debt

Residents of Indianapolis have a number of options available to them if they are struggling with medical debts, credit card bills or other financial burdens.

For example, in some cases, it may be possible to negotiate with a creditor to work out a manageable payment plan or even to pay only a portion of the debt.

There are times when perhaps a creditor has not taken all the proper steps to collect on a debt or has retained a collector who violates the law when trying to secure payment.

In other cases, filing for bankruptcy may be a family’s best way of securing a fresh financial start.  No family should be ashamed to consider this as a valid legal option.