Medical Bankruptcy – Bankruptcy due to medical expenses
Your health should come first before your finances – yet the results can sometimes be devastating. According to a Harvard University study, medical bills justify fully half of all bankruptcy filings. Additionally, a full three-quarters of these bankruptcy filers had medical insurance, in any case, when they first became ill. Thanks to high insurance premiums, laws that allow insurers to let critically ill and disabled citizens continue their health insurance while working, the study confirms that 1.5-2 million Americans may file for medical bankruptcy each year only due to serious illness.
Medical debt is similar to unsecured debt, meaning there is no collateral available for creditors to take back. However, without filing a medical bankruptcy or other security, the medical debt can be tied to the collateral you own. After a few years, bills owed to a hospital or insurance company may be able to garnish your earnings and claim some of your equity in a home, business or additional expensive assets.
If you are feeling overwhelmed by medical debt, then a bankruptcy attorney can help. If you realize that it is not possible to pay your medical bills, but you must continue to consider the same doctors, an experienced bankruptcy attorney can help you get your finances in order. Also, prioritize expenses to make sure you can see the doctors you need and file for Chapter 7 bankruptcy. In case your debt is a one-time expense, then an attorney can help you negotiate with your provider to create a more reasonable payment plan. And a bankruptcy attorney can also protect you from nagging creditors while you undergo treatment, allowing you to focus on what matters most—getting better.
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