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Why health problems often lead to the need to file bankruptcy

Most people are aware that there is a medical debt crisis in this country. Millions of Americans have found themselves unable to provide for themselves and their families due to experiencing health problems that make it difficult, if not impossible to work. This leads to a lack of income, often a lack of insurance, and an inability to pay their medical and other bills. Hundreds of thousands of families across the country, including many here in Tennessee, file for bankruptcy every year due to unexpected health problems.

According to the American Journal of Public Health, it is estimated that two-thirds of all bankruptcies are related to medical issues. Most people lack just a few hundred dollars in savings to cover a minor medical expense. That leaves them unprepared for a major health crisis or any big medical events that may occur in their retirement years.

A frequent lecturer at Harvard Medical School has said that the average American is one significant illness away from complete financial ruin. Insurance, while helpful, offers little protection when a big medical event occurs. Those with employer-offered insurance often lose it when they need it most, which does not help their situation.

When medical and other debts simply become too much, it can be easy for Tennessee residents to throw in the towel and give up on any hopes of regaining financial freedom. That feeling is understandable. Thankfully, many may qualify for bankruptcy which can offer debt relief and allow for the rebuilding of one’s economic position. An experienced attorney can offer more insight into debt relief options that may benefit one’s specific situation.