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Medical expenses are a frequent cause of bankruptcy

People in Essex who experience unexpected life changes might also be confronted with the realization that their financial situation is negatively affected by it. This is especially true with medical expenses. No one can be truly prepared for an injury or illness that will lead to massive medical costs. Along with the personal issues that arise, the finances are not something to be ignored. Many people are taking the step to consider bankruptcy to help them through this difficult time.

For many, filing for bankruptcy is in direct opposition to what they believe and don't realize that it is a method that many use when facing financial issues. While the new healthcare laws were meant to help those who didn't previously have health insurance, it hasn't solved the problem of filing for bankruptcy due to medical expenses.

A study has indicated that unpaid bills for medical care have been the top cause for people filing for bankruptcy. This ranks above mortgages and credit card bills. Many who have these problems with medical costs don't have insurance coverage, but a significant number of them do. One study indicates that 78 percent of people who file for bankruptcy because of medical bills had health insurance.

Certain treatments are often not covered by medical insurance. Co-pays, money for travel and other expenses that are often not considered accumulate, raising the expenses substantially. In addition, people will lose money from being unable to work, having to pay for the care of children and many other things. With a deductible, the costs can be massive. When considering filing for bankruptcy because of medical expenses, it's imperative to think about it in terms of other bankruptcies.

There are several options to choose from when making the decision to file. Depending on whether or not a person believes he or she will be able to repay those to whom they owe money will have a great influence on which form of bankruptcy to choose. When making this decision, one key is to discuss the matter with an experienced legal professional who can explain the positives and negatives for each individual situation in an evenhanded manner.

Source: FoxBusiness.com, "Medical Bankruptcies are Still a Problem, Here's What to Expect," Donna Fuscaldo, accessed on Dec. 27, 2014

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