Is your debt due to your health?

Too much debt and not enough income is a recipe for financial disaster. While at one time or another, your bills were much less and your income much higher, lately, it seems like you can no longer hold everything together.

There are myriad reasons why you may find yourself considering filing for bankruptcy. It is often the last resort for many as they struggle to climb out of debt. When you step back to assess how you got here, do you find that it was one event or a string of bad choices? Many people cite medical issues as the top cause of bankruptcy. Learn how this happens, and if there is anything you can do to avoid the same fate.

The rising cost of healthcare

The healthcare system is replete with malpractice suits. One of the reasons that doctors and medical facilities give for the expense of care is the high cost of malpractice insurance and payouts associated with mistakes. Doctors now order too many tests for a patient's symptoms out of fear of reprisal should they miss some underlying issue. Medical bills and care are the most-often cited reason people give for needing to file bankruptcy.

Out of work

Coinciding with the cost of healthcare is a correlating problem. If someone becomes gravely ill or gets hurt, likely, he or she cannot work for a while. Whether the medical issue lasts for a couple of weeks or much longer, the bills coming in cannot pay themselves. The decrease in a paycheck while dealing with a health crisis causes debt to worsen.

Spending sprees

Credit card companies and banks may make it easy to contribute to debt. Mortgages with low rates may tempt people to buy more of a house than they can afford. Accessibility to credit cards and higher limits make it tempting for people to purchase what they want and when they want it, regardless of money saved or earned.

Bankruptcy may seem like the only shot you have at getting out of the pit of debt and off the collections list. If you feel like wiping the slate clean will do you and your family good, consider contacting an attorney for information.

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Prescott Pearson & Tande, PA
443 Old Highway 8 Northwest, Suite 208
New Brighton, MN 55112

Toll Free: 888-366-0827
Phone: 651-968-8096
Fax: 651-633-7562
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