Medical Bills Bankruptcy Solutions
What is Medical Bankruptcy?
In a broad sense, medical bankruptcy can be understood as a legal protection availed against debts arising out of medical treatment, hospitalization expenditure, medication costs, and nursing as well as physiotherapy charges. Medical debt may be able to be easily discharged by filing a bankruptcy. Some of the major causes of medical bankruptcy are:
- Hospital and health insurance costs increase drastically
- Substantial increase in the hospital stay for uninsured Americans
- Retirees grossly underestimate health care costs
- Lack of children's health insurance increasing in large numbers across the U.S.
- Availing your health insurance while unemployed
Connect with Attorney Now to Work on Eliminating Medical Debts!
Medical debt and filing for medical bankruptcy
As per the year 2005 study conducted by the Harvard University, it was found that:
- Medical bills were responsible for half of all the bankruptcy filings within the U.S.
- Three-quarters of the bankruptcies filed had medical insurance, the reasons for the bankruptcies being high cost of medical insurance, laws allowing insurance companies to prevent sick people from availing health care insurance, and the inability of seriously ill individuals to continue with their health insurance while at work.
- 55% of all new bankruptcy filings or 1,100,000 Americans are likely to file for bankruptcy every year.
Medical debts are unsecured debts, so there's no collateral available, which the creditors can repossess. However, the medical debt can be tied to collateral, and the insurance company may be able to garnish your wages, or claim a part of equity in a home, in case a bankruptcy filing protection is not availed.
Medical Bankruptcy and Chapter 7
Filing for bankruptcy?
get an appointment
Talk to your local bankruptcy lawyer now!
The Chapter 7 bankruptcy is fundamentally designed to eliminate any or all unsecured debts. Unsecured debt consists of debt relating to:
- Credit Cards
- Medical Bills
- Payday Loans
- Some Personal Loans
- Utility Bills
- Parking Tickets
Your free Medical Bill Bankruptcy Evaluation
A bankruptcy lawyer can talk to you about:
- Analyzing your financial liabilities and debt conditions
- Advising you on filing for Chapter 7
- Coordinating with the trustee appointed by the bankruptcy court while selling the assets and paying off the creditors
- The actual process of filing for medical bankruptcy
- Drawing up a new repayment schedule with the bankruptcy court