Millennials crushed by medical debt
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Medical debts are one of the most common debts incurred and many people struggle to pay. One in six Americans has past-due health bills on their credit report. Even those with insurance might have unaffordable medical bills because of ever-higher deductibles across most Affordable Care Act insurance plans. Wilmington bankruptcy can help shed this debt.
Insurance plans aren’t what they once were
While insurance plans now cover some services for free that they once charged a copay for, there’s still a lot to be desired under most ACA plans. Even employer-provided insurance plans aren’t as vigorous as they once were and might leave you paying out of pocket for services not covered, stiff copays, coinsurance, and steep deductibles.
This can add up to medical debt you can’t afford and a negative impact on your credit rating if the items go into collections. Some people prefer to run up their credit cards to cover out of pocket expenses, but that leaves you with the same debt, only in a different form. Either way, Wilmington bankruptcy can help you get a clean slate.
Surprising fact: Millennials struggling with medical debt
You might think that Baby Boomers would be more prone to medical bill delinquency, but a new study reveals it’s the youngest generation of working Americans suffering from medical bills. A study published by Health Affairs examined credit data on four million US consumers with delinquent medical debt sent to a collection agency. The results were surprising.
Health Affairs found that Millennials (people born early 1980’s- early 2000’s) incur medical debts more frequently than other age groups. Not only that, but Millennials are more likely to have a greater quantity of medical bills. Between the ages of 27 up to age 64, medical debt dropped by 40% some of which is likely about better insurance coverage and more stable income.
Why so much medical debt for Millennials?
Many Millennials are self-insuring for the first time, having aged out of their parents’ coverage under the Affordable Care Act. Faced with costly premiums, and limited employer insurance options, they may take a disadvantageous policy that is what they can afford. Combine that with individual medical deductibles in the thousands of dollars, and there’s trouble brewing.
Insurance issues coupled with a career and salary in early stages bring more potential for payment problems. Pile student loans on top of that and it’s a Millennial mess in the making for some younger Americans. This can be a tough road for those trying to figure out their finances for the first time on their own. Wilmington bankruptcy might help trigger a financial reset.
How Wilmington bankruptcy helps
Unless your circumstances change, it can be hard to catch up once you have bills slide into delinquency. If you’ve also maxed out credit cards trying to deal with medical debt, you might have financial problems on more than one front. Wilmington bankruptcy discharges most types of unsecured debt including medical bills, credit cards, personal loans, and more.
Medical bills are one of the common reasons people seek bankruptcy relief at any age. After an accident or serious medical crisis like cancer, medical debt can be financially devastating, and bankruptcy offers a fresh start. In addition to the debt mentioned above, debt collection items are dischargeable along with some older income taxes.
Types of Wilmington bankruptcy
You can choose Chapter 7 bankruptcy and see your medical bills and other qualified unsecured debt discharged within just a few months. With Chapter 13 bankruptcy, you get on a repayment plan to catch up on secured debt like your mortgage or car loan and have your unsecured debts reduced significantly (sometimes to just pennies on the dollar).
If you’re drowning in medical debt, no matter your age, contact the Law Offices of John T. Orcutt. Read reviews from clients then call +1-919-646-2654 to schedule a free Wilmington bankruptcy consultation at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.