Battling a serious illness can be a stressful
time. Compounding that stress for many
Americans is how they will pay medical bills.
More than 60% of all personal
bankruptcy cases filed are due to medical debt. 80% of those who file for
bankruptcy protection have some form of health insurance.
Why
do medical problems force so many insured Americans toward bankruptcy? In many cases high medical bills directly
contribute to their bankruptcy. Costs
for prescription drugs, hospitalizations and the need for chronic care are the
most frequent causes for medical bankruptcy.
Many families with coverage are underinsured, making them responsible
for thousands of dollars in costs out of their own pockets. Others lose coverage when
they became too sick to work. Many insurers cancel coverage immediately when an
employee suffers a disabling illness; others do so within a year.
Medical bills will not go
away. Doctors offices or hospitals will bill you for
any amount that is not covered by your health insurance. If you do not satisfy these bills, your debt
will most likely be turned over to a collection agency. Collection notices may be posted on your
credit report, resulting in a lower credit score.
Continuing failure to pay these bills may result in a judgement against
you or a possible garnishment of wages or tax refunds.
Bankruptcy was designed to
resolve debt and help people get a second chance. Please contact our office to set up a consultation and discuss
your needs with one of our knowledgeable attorneys.
