The problem of excessive and unsustainable medical debt in the U.S. isn’t actually a problem: it’s a full-blown epidemic. A study by the Centers for Disease Control and Prevention (CDC) found that 1 in 3 Americans are burdened by medical bills. And research by NerdWallet Health revealed that medical debt has now earned the dubious distinction of being the number one cause of bankruptcy filings in the nation.
If you’re anxiously watching medical bills pile up — and feeling the heat from increasingly aggressive hospital, doctor and healthcare network collection tactics — then filing for bankruptcy might be a viable option. This is because medical bills are viewed by the courts as general unsecured debts. This is not the case with some other debts, such as child support, alimony, restitution due to a criminal conviction, or student loans. These will remain on the books even after filing for bankruptcy (some people may be able to get relief from their student loan debts if they can demonstrate financial hardship, but that is part of a separate filing).