Most people do not escape this life without dealing with a few health issues along the way — some experiencing more than others. Those who do not financially prepare to tackle those issues may find themselves facing economic problems as well as their physical ailments. According to a recent report, most people, Michigan residents included, cannot afford the consequences that follow a serious medical problem. Thankfully, bankruptcy law may be able to bail them out and help them get back on their feet financially.
It is said that over 500,000 bankruptcy filings each year stem from health problems — why? It is not just medical bills that are the problem. Health problems often affect a person’s ability to remain employed. The loss of a job due to a medical crisis not only leaves one with no income, but it can also take away one’s employer-sponsored insurance coverage. For the average family of four, that equates to roughly $28,000 a year, which would now have to be paid out of pocket — if not more — for medical coverage.
As most people do not even have $400 to cover a medical emergency, paying premiums on a private insurance policy is out of the question for a lot of Michigan residents. So, no or poor insurance and no or little income means that medical bills go unpaid and so do other financial obligations. This leads to creditors demanding payment, credit scores going down and debt increasing at a rate that leaves one feeling he or she will never regain financial freedom.
Numerous Michigan residents who are struggling financially due to experiencing a medical crisis that caused an avalanche of monetary problems may qualify for protections offered under bankruptcy law. There are two main types of bankruptcy available to the typical consumer. Legal counsel will have the ability to review the details of one’s situation and offer guidance on the debt relief option that best fits one’s needs.