A study conducted by the Urban Institute showed that the millennial generation is just as likely, if not more so, to suffer from serious medical debt. This can be an overwhelming situation for many Louisiana residents. Fortunately, there could be several options available to combat the debt, such as filing for Chapter 7 bankruptcy.
The study determined that even though younger people are typically more healthy than older people, 21.1 percent of those ages 18 to 24 and 27.8 percent of those ages 25 to 24 faced unpaid medical debt. One reason younger generations may struggle with medical debt is because they are less likely to have health insurance. Another common cause is simply lack of savings, as younger generations have had less time to build up their savings in order to pay large debts.
When looking into the various ways to handle significant debt, individuals may find a solution in filing for Chapter 7 bankruptcy. With this form of bankruptcy, a person's assets are liquidated and unsecured debt is wiped out. In addition, an automatic stay is put into place that blocks creditors from seeking further payment. Though the bankruptcy may remain on a credit report for a number of years, credit scores typically go up a few months after filing.
Though Chapter 7 bankruptcy could be beneficial to some millennials, anyone facing serious debt may be able to find financial relief through filing. An experienced Louisiana bankruptcy attorney could evaluate a client's debts to determine the best course of action for the particular situation. An attorney could also provide guidance and assistance throughout the legal proceedings involved in filing for bankruptcy.
Source: investopedia.com, "The Millennial Guide to Medical Debt", Greg Daugherty, May 11, 2017