Some California residents might fear getting sick or injured not because of the health implications, but because of medical bills. Many Americans struggle with overwhelming medical debt that they simply cannot seem to find ways out of. These hefty debts are so troublesome that they are actually one of the most commonly cited reasons when filing for Chapter 7 bankruptcy.
A study from the American Journal of Public Health analyzed random court filings for personal bankruptcy from 2013 to 2016. It concluded that medical debt is responsible for approximately 530,000 bankruptcy filings every year. Unfortunately, the cost of medical care is so astronomically high that even people with steady incomes and reasonable health insurance coverage cannot cope with the costs of a single emergency medical bill.
Unexpected medical bills fall under a larger umbrella category. Unexpected changes in circumstances covers things like surprise medical bills, loss of income and other sudden changes. For many people, a single life change can make it impossible to address bills. Most people in this situation burn through their savings quickly and are left without options for covering expenses.
Most people in California truly want to repay their debts, but life has a knack for getting in the way of even the best laid plans. Chapter 7 bankruptcy can provide a solution for individuals who feel as if they are stuck in desperate situations. Although some people view filing for bankruptcy as the end of the road, it is actually an extremely useful process that helps individuals discharge their debts and get back on financial track.