Medical bills are one on the main reasons people file for bankruptcy. Medical bills after a temporary illness or bills due to chronic medical problems can force many people to the edge of financial ruin. Even when people are insured, the time off of work and loss of income can make their debt situation go from bad to worse. It’s hard to think that many people in the United States can find themselves on the brink of financial ruin because of temporary illness or medical problem. If you or a loved one have suffered from an illness, which has left you with medical bills, doctor bills, hospital charges, or any other type of medical related debt, you may consider dealing with those bills in bankruptcy.
When the rising costs of healthcare are coupled with the high cost of medical insurance for employers who in turn pass the increases on to employees, it can make just affording health insurance a financial challenge. It can become very costly if you or a loved one become sick or suffer a long term illness. If the illness causes you to not be able to work, then this can compound your debt by incurring debt from medical expenses and doctor bills while having little or no income. As you might imagine, this can eventually take its financial toll. Bankruptcy can be a solution to burdensome medical bills.
Chapter 7 Bankruptcy & Medical BillsWhen you have significant medical bills, filing a Chapter 7 Bankruptcy can eliminate your medical bills completely. If the bankruptcy means test says you qualify to file for Chapter 7, it will allow you to get rid of medical bills, hospital charges, doctor bills, medical collections, dental bills, as well as most any type of medical debt. Medical bills are considered unsecured debts, and are treated in bankruptcy just like credit cards. As such, medical bills can be totally eliminated in a Chapter 7 Bankruptcy.
Chapter 13 Bankruptcy & Medical BillsIn situations where the bankruptcy means test dictates that you aren’t eligible to file for Chapter 7 Bankruptcy, you may instead choose to file for Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy is a court supervised repayment plan which can allow you to keep your most important property while repaying your debts over time. If you file for Chapter 13 Bankruptcy you may be able to significantly reduce your medical bills. Chapter 13 can allow you to repay your medical bills over a 3 to 5 year period of time based on your disposable income. Quite often, Chapter 13 Bankruptcy forces unsecured creditors like medical providers, hospitals, and doctor’s to accept pennies on the dollar.
When your health or the health of your children or other loved one is at stake, you will spare no expense to get them or you back to health. Likewise, should you or a loved one suffer a life-threatening health crisis, you will often say to the doctor or hospital staff to do anything at whatever the cost, “Cost is no object”. Unfortunately, cost is an object in the health care system, and many times ends up as a medical debt that will go unpaid. This happens for many reasons such as having no health insurance, having inadequate health insurance, or not being able to afford the health insurance that may be available. While the rest of the civilized world offers healthcare in some form to its citizens, the United States of America spends billions of dollars on advances in healthcare and medicine, yet remains far behind in offering medical coverage and health insurance for its citizens. It’s no secret that healthcare costs are inflated and getting out of control. Those who can’t afford healthcare must sometimes choose between their money or their life, since going without health insurance because of the cost ends costing much more when serious illness occurs.
Just like an illness that can be cured, there may be a cure for overwhelming medical debt. The United States Bankruptcy Code provides a way to deal the medical bills. If you have medical bills, doctor bills, hospital bills, medical collections, or any other debt problems, don’t wait until you loose everything before you get financial help. Bankruptcy may be an option for a fresh financial start. If you are considering your bankruptcy options to get rid of, or reduce your medical bills, contact a bankruptcy lawyer in your area to get the facts.
Copyright: Copyright © 2008 RJ Atkinson LLP – Attorneys At Law
About the Author:
Rogena Jan Atkinson of The Law Offices of RJ Atkinson,LLP, (rjabankruptcy.com) is a bankruptcy lawyer & foreclosure attorney who has stopped thousands of foreclosures with bankruptcy. Visit
www.rjabankruptcy.com to learn more about foreclosure and bankruptcy.