Women, Medical Debt and Bankruptcy

American women have a harder time paying for medical care than women in other countries, according to a recent Commonwealth Fund study. While only 12 percent of French women and four percent of women in Germany have difficulty paying for health care, 24 percent of women in the U.S. feel the same way. In 2010, 20 percent of American women were uninsured, up five percent (or six million women) from 2000.

Medical Debt Can Lead to Bankruptcy

Medical debt is increasingly becoming a significant contributor to Americans' financial distress. This applies to women in particular, but also to men and families. Non-profit credit counseling agency CredAbility says that in 2010 and the first half of 2011, around 20 percent of those it counseled cited medical debt as the primary reason for seeking bankruptcy protection, up significantly from past years.

With high unemployment and rising health care costs, medical debt is constantly increasing. Those with insurance continue to pay higher premiums for less coverage and higher deductibles. The uninsured (and often unemployed) feel the full brunt of their medical expenses.

People usually don't have a choice about incurring medical debt for needed treatments or hospital stays. Individuals then feel obligated to pay their healthcare providers. To pay the hospitals and doctors, people often turn to credit cards, and compound interest only compounds the problem.

Bankruptcy May Be the Way Out From Under Water

Many people are turning to bankruptcy to help them get out from under the exorbitant pressure of medical debt. Medical debt is considered an unsecured debt that can be discharged through bankruptcy. Chapter 7 bankruptcy allows for the discharge of most debts including medical debts, but eligibility is dependent on your income and asset protection is relatively limited. Chapter 13 allows for the discharge of some debts, and the reorganization of others into manageable monthly payments.

Chapter 7 and Chapter 13 bankruptcies have their pros and cons and the decision of which to file depends on many factors. An experienced bankruptcy attorney can provide further guidance about the best choice for your specific situation.