Medical Bills and Bankruptcy: Get Your Diagnosis for a Fresh Start!
When medical bills make you sick, file for bankruptcy!
Medical debt and bankruptcy go hand in hand. Filing for bankruptcy relief because of medical bills has been rising steadily over the past several decades. While many Americans are without health insurance, medical bills can put many families in a financial bind.
A 2009 study by Harvard researchers found that 62% of all personal bankruptcy were a result of the financial hardship brought on by medical problems. Unfortunately, even those with health insurance are not immune from facing crippling debt from health care costs.
Many clients find bankruptcy as their only option after a catastrophic illness, such as a heart attack, stroke, or battle with cancer. Even with health insurance, hospital stays can easily incur hundreds of thousands of dollars in medical bills and bankruptcy may be the only option. The GOOD NEWS is that medical debt is dischargeable in either a Chapter 7 or Chapter 13 bankruptcy case. This means that all of your medical debt can be wiped away and you will no longer be responsible for the debt. Medical debt is considered unsecured non-priority debt in a bankruptcy case. Medical bills are categorized and treated just like your credit cards, pay day loans or unsecured loans. There is no limit to medical debt and bankruptcy.