In the past several years, if you are a Brooklyn resident or live anywhere throughout New York City, you might have been confronted with financial hardship. Whether that was due to job loss, medical expenses or other challenges, it has hit some demographics harder than others. For people who are categorized as millennials or Generation Z, you might be similar to others and dealing with medical expenses that are hindering the ability to pay a mortgage or rent. Knowing you are not alone dealing with this is one step. Another may be considering alternatives like bankruptcy.
HealthCare.com survey show scope of medical debt problem
In its survey, HealthCare.com found that approximately 25% of millennials and Gen Z people frequently skipped rent and mortgages to cover medical bills. This dovetails with information from the Consumer Financial Protection Bureau (CFPB) that says despite people focusing on medical expenses, many were still incapable of clearing it. An estimated 58% of debt that has reached collections is due to medical bills. Some medical bills are mistakes from hospitals, but they still end up on a person’s credit report.
Credit scores are crucial when seeking loans and people who have outstanding medical debt or are behind on other bills could have trouble with even getting a mortgage or securing a rental. Rent and mortgages can be exorbitant and you may not know where to turn if you are facing financial turmoil. Fortunately, there are ways to clear debt, potentially retain a home and get your credit into a better state in relatively short order. Chapter 7 liquidation bankruptcy can clear all unsecured expenses like medical debt and credit card debt. Also, certain properties can be retained. A Chapter 13 is a payment plan over three or five years that allows people to pay a certain amount to a trustee each month and keep a home, an automobile and more.
Bankruptcy could be a wise solution for your debt problems
If you are concerned about your debt, have fears about what might happen and do not know if there are effective strategies to try, it is important to know that there is assistance available. Instead of assessing the problem, it may be preferable to forge a solution to get through these complicated times. For advice and guidance with considering bankruptcy, how it works, which chapter should be used and its long-term impact, it is useful to have experienced and strong representation to try and reach a positive result and move forward.