Smith County Bankruptcy Blog

According to Bernie Sanders, roughly 500,000 people have gone bankrupt because of medical debt. This figure is based on a study conducted in 2019 that analyzed 910 bankruptcy cases between 2013 and 2016. It revealed that 65.5% of those bankruptcies were caused by medical debts. However, researchers are unsure as to whether the debt itself is to blame for Texas residents and others filing for bankruptcy. Instead, it may be the lost income after experiencing an injury that leads to financial distress.

Another 2019 study found that over 137 million Americans had experienced a financial hardship because of medical debt. While medical debts may be difficult to deal with, there are ways to potentially avoid going bankrupt. For example, individuals are encouraged to build an emergency fund to help pay for unexpected medical and other expenses. This fund should be able to cover a person's living expenses for up to six months.

One of the most common misconceptions about bankruptcy is that you can never recover. Yes, it gets rid of your debt, but then you have that bankruptcy on your record. You can never shake it, you can never really get a fresh start. It feels like giving up on your financial future.

This outlook may be common, but it is very misguided. The truth is that bankruptcy is a fresh start. It can be a positive for your financial future. You can not only recover from it, but you can thrive after bankruptcy. It's time to put this myth to rest.

People in Texas who do not have health insurance may want to look into it. Health insurance might be out of reach for some people, but those who can afford it but think they do not need it because they are healthy should consider that they could be injured or become suddenly ill. Medical debt can mount quickly and result in serious financial problems or even bankruptcy.

Some people put their medical expenses on a credit card, but this can be a mistake as well. Carrying long-term debt on a credit card can be expensive because the interest grows over time. If it is necessary to use the card, people with good credit may want to shop around for a zero percent interest card that offers a balance transfer. People who have already accumulated medical debt on a credit card should focus on strategies for paying it down. These strategies could include earning more money at a part-time job. Furthermore, since interest is calculated based on the average daily balance, it may help to make one payment earlier in the month and one later.

Many people living in Texas struggle with debt, and this includes those aged 55 and over. In fact, there has been an increase in older Americans filing for bankruptcy in recent years.

In many cases, medical bills are the driving issue behind bankruptcy. As people age, their medical needs can become more complex. Even individuals with insurance coverage may find themselves with tens of thousands of dollars in health care bills. In addition, health problems can make it difficult for people to work and may even force some into early retirement.