Health coverage often no shield against high debt exactions

Many of our Southern California readers might reasonably assume that they're sufficiently protected from the financial downside of any medical risk because of the health insurance card in their wallet.

That assumption has long been true, of course, especially where company-sponsored health insurance has been secured that makes it at least a palatable proposition for a policyholder to go see a doctor when he or she is ailing.

The confident assurance regarding health costs contained through insurance has been sorely tested of late for many millions of Americans, though, who have seen medical co-pays, deductibles and out-of-pocket expenses skyrocket to unprecedented heights.

As noted in a recent New York Times article, that has led to a sad reality of so-called "medical bankruptcy" being experienced by a progressively larger band of consumers across the country.

Of course, it's no secret that medical bills -- often unexpected, not budgeted for and pricey, indeed -- have sorely depleted the pocketbooks of many Americans for years. A university professor and researcher who authored a study 10 years ago on medical debt and resulting bankruptcy notes, though, that a problem that was once largely an issue for medically uninsured individuals and families is now a huge challenge even for people with insurance.

In fact, notes the Times, a poll recently conducted by the newspaper and the Kaiser Family Foundation shows that a substantial number of people with health insurance are still challenged to pay off their medical debt.

And that challenge opens the doors for collection agencies and other creditors to make their lives increasingly stressful and difficult.

In some instances, seeking debt relief through bankruptcy can be a logical and smart decision for a debtor who is struggling under a seeming mountain of medical bills or other financial challenges.

A proven bankruptcy attorney can answer questions and help a client explore viable options for reducing high debt exactions and regaining financial traction.

Bankruptcy is a long-recognized legal remedy that helps many people dealing with onerously high debt obligations secure a fresh financial start. Persons who take some time to learn about the process are often pleasantly surprised by what they discover.