Medical Bills: Discharging Medical Debt

05/04/2014
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medical bills

When medical bills make you sick, file for bankruptcy!

With many Americans out of work, and therefore without health insurance, medical debt can put many families in a financial bind that is impossible to get out of.  A 2009 study by Harvard researchers found that 62% of all personal bankruptcy filed was because of financial hardship brought on by medical problems.  Unfortunately, even those with health insurance are not immune from facing crippling debt from health care costs.  The same study found that 78% of those filers citing medical debt as the reason for filing had medical insurance at the start of their illness. That includes 60.3% who had private coverage, not Medicare or Medicaid.  Filing bankruptcy because of medical bills has been rising steadily the past several decades.  In 1981, only 8% of families filing for bankruptcy cited a serious medical problem as the reason for filing.

Affordable Care Act May Help

Whether it is because of a serious accident that requires extensive care or whether someone looses their job because of illness or disease, the costs associated with health care will continue to place individuals into dire financial situations.  The recent federal legislation, the Affordable Care Act may help relieve some of the financial burden of health costs. However the ultimate impact of the Act is still to be determined.  The Act does not have a retroactive effect. That means any medical bills you have incurred before you are covered by a plan will still be yours to pay.

Medical debt is completely dischargeable in a Chapter 7 bankruptcy.  If you qualify for a Chapter 7 filing under the means test, this means all of your medical debt will be discharged.  You will no longer be responsible for the debt, and the doctors, hospitals, and debt collectors, can no longer harass you for the debt.  Many clients find bankruptcy as their only option after a catastrophic illness, such as a heart attack, stroke, or battle with cancer.  Even with insurance, hospital stays can easily incur bills of hundreds of thousands of dollars, more than most can pay back in their lifetime.

Have you or a family member has had a serious accident or illness that has resulted in medical bills you are unable to pay? Or have you have lost your job because of a prolonged recovery and no longer have the finances you once had and bill collectors are harassing you? Call the Ohio Estate Attorney today.  Attorney David J. Smith can help you rid yourself of those medical bills through bankruptcy.  Call 937-318-1529 for a free in-office or telephone consultation today.

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