Medical Bills and Bankruptcy

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.