Medical debt is pushing more and more people to the brink of bankruptcy, a recent study by a nonprofit credit-counseling agency found.

The analysis by CredAbility, which examined 47,000 people in the first half of this year and over 100,000 in each previous year, stated that outstanding medical debt has consistently become a larger factor that leads individuals to file for bankruptcy protection. Around 20 percent of the people who sought financial counseling in the last two years indicated they were prompted to do so because of medical debt. That represents a 12 to 13 percent rise from the previous two-year span.

A combination of high unemployment rates and soaring medical costs helped lay the backdrop to this trend. As more and more people lose their jobs, they also lose the medical benefits tied in with that employment. This leaves them to pay their own medical bills, leaving them susceptible to incurring insurmountable debt.

However, even for those who still have their jobs, costs for healthcare continue to spike, leaving them to pay higher premiums and deductibles. In some cases, employees will pay a low premium, but then are responsible to cover a higher deductible when they seek medical attention.

Medical debt tends to pile up because people, for the most part, are hesitant to default on it. They will find themselves taking out extra credit cards or using other financially unhealthy methods in order to cover the medical costs. Often, patients will feel guilty about not paying debts to those that have helped them.

Debt of this nature can quickly become overwhelming because it can pile up, and hospitals and health care providers are often quick to refer debts to a collection agency. While some people to choose to negotiate with collectors and creditors, this strategy does not always work. However, there are other options available for people who are overwhelmed by medical debt, including bankruptcy. If you have questions about how bankruptcy can help you deal with your medical debts, an experienced bankruptcy attorney can give you answers.

Source: The New York Times, "Medical Debt Cited More Often in Bankruptcies," Ann Carrns, Aug. 18, 2011