Exterior of the Office Building of Lynch & Belch, P.C. Office

Helping People Get A Fresh Financial Start to Regain Financial Independence

Helping People Get A Fresh Financial Start to Regain Financial Independence

Could cancer lead to Chapter 7?

On Behalf of | Jan 2, 2020 | Chapter 7 Bankruptcy

Most people do not end up filing bankruptcy in Indiana unless they have a situation that puts strain on their finances. The trigger can be anything. However, there is one issue that you may face that could put you into serious financial trouble and lead to you having an increased risk of having to file for bankruptcy. According to CNBC, if you have cancer, you are 2.5 times more likely than someone without cancer to seek bankruptcy relief. 

There are many reasons behind this increased risk. The actual medical costs you will incur during the course of your treatment will likely be quite high. If you have any gaps in your insurance coverage or even a high deductible, you can expect to see astronomical out-of-pocket costs. This adds to any current debts you already have. It may even create stress that can affect your ability to get healthy and fight the disease, which means more medical care and longer treatment. 

The bills adding up only end up more of a concern if you cannot keep working. Losing your income will add to your financial strain. If you work as a contract or gig worker, you may face even more issues, especially if you have to break your contract. Furthermore, you will not qualify for the benefits an employee position would provide, such as Family Medical Leave Act coverage. 

It is not a surprise that getting a cancer diagnosis could lead to bankruptcy when you see the different factors that impact your finances after a diagnosis. This information is for education and does not constitute legal advice. 

FindLaw Network