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Medical bills are a leading cause of bankruptcy in New Jersey

On Behalf of | Jul 1, 2013 | Personal Bankruptcy |

When times are tough, many people in New Jersey will do what they can to avoid having to go to the doctor in order to keep from incurring any debts for medical bills. Unfortunately, sometimes there are emergencies that require a visit to the doctor or hospital. In those cases, people have no choice but to end up with medical bills, which are a leading cause of many people filing bankruptcy.

Having medical bills for emergency room visits is bad enough, but if someone has a prolonged illness such as cancer or requires an extensive stay in the hospital due to something such as a car accident, the medical bills can be unmanageable. Even patients who have adequate medical insurance can end up with a large amount of out-of-pocket medical expenses. This has gotten worse in recent years as the cost of medical care has increased. As a matter of fact, there has been an approximate 22 percent increase in out-of-pocket expenses for patients.

Statistics have shown that the average debt carried by Americans has dropped less than $100. However, the average revolving debt that Americans carry has dropped approximately $370. It is believed that this shows that the average amount of medical bills in the average debt has risen about $200.

For people in New Jersey that were already struggling with their finances, being saddled with additional debt from medical bills can be a hardship. Filing for bankruptcy protection can give a person the time and space needed in order to figure out what to do with their finances. Many debts can be eliminated through bankruptcy and can give much needed financial relief.

Source: Business Insider, “People Are Paying More Than Ever For Out-of-Pocket Medical Care,” June 17, 2013


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