Medical Bills Can Kill You
Good medical care is very expensive and even one emergency from an accident or illness can wipe out what it has taken a lifetime to build. Medical bills are often a major factor in contributing to the necessity of bankruptcy even if one has insurance coverage. Bankruptcy can eliminate the debt associated with medical care as well as most other types of debts.
There is no doubt that the cost of health care is rising dramatically. With our economy in a deep recession, many are struggling to just provide the basic needs for their family. Most people are ill prepared for medical emergencies which can wipe out what it has taken a lifetime to build. The past decade has witnessed more and more Americans going without the medical and dental care they need simply because there is no room in the budget for such. Certainly, the number of Americans without the health coverage needed to pay for such services is at an all-time high; even with health coverage, many Americans are finding their mounting medical and dental bills more than they can manage in an economy in which they cannot even manage daily living expenses.
The number of Americans who are uninsured because of the cost of insurance With 45 million uninsured Americans struggling to make ends meet, the increase in bankruptcy filings due to medical expenses is rising. In addition to avoiding unnecessary medical expenses, Americans need to use bankruptcy wisely. Consult with a qualified bankruptcy attorney to discuss available options before filing.
What You Need to Know About Medical Bills
Medical bills are one of the leading causes of the rise in the number of bankruptcies. One serious illness can wipe out a person’s savings and cause numerous bills to pile up quickly. Even for those who carry medical insurance, out-of-pocket expenses, deductibles, and being unable to earn money quickly turn into a snowball of debt that is out of control. If you do not have medical insurance, the bills caused by an accident or illness can be astronomical.
Having high medical bills that you simply cannot pay, in addition to other debt, is one of the indicators that you may need to consider bankruptcy as a viable option. Unsecured debts, like medical bills and credit cards, can get people into trouble the most and are the ones that bankruptcy will relieve most easily. Medical bills include doctor’s bills, hospital bills, equipment fees, ambulance fees, and other costs not covered by insurance.
The good news is that most of this debt can be resolved with a bankruptcy; but you may have to give up some of your high-value assets if you want to wipe it all away with a Chapter 7. If you can handle paying a minimum of $100 per month toward your debt for the next five years, then you may want to consider Chapter 13 instead, which will let you keep your assets
Timing Your Bankruptcy for Medical Bills Is Crucial
As medical bills often make up a large portion of a bankruptcy filing, some financial experts advise consumers to wait until their medical debt is at its highest before filing a bankruptcy petition. Because the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 severely limits the time between bankruptcy filings, consumers should make sure that they can claim as much of their medical debt in their petition as possible.
Filing early while still in the midst of accumulating major medical expenses makes little sense. Waiting until major surgeries, procedures, and other high-cost medical expenses have finished accumulating makes the most sense for many people. If you are pregnant or have a scheduled procedure that you know will end with another bill that you cannot pay, your best bet is to hold off on declaring bankruptcy until after the bills arrive for that procedure. That way, they will be included in the bankruptcy, as well as your previous bills. Declaring bankruptcy and then receiving other bills may cost you additional money, or you may not be able to have them discharged.
Consult an Experienced Bankruptcy Attorney
Get the help you need to evaluate how bankruptcy can give you a fresh start without having to pay the medical bills related to a major illness or injury. A short free consultation will prove invaluable to your future financial health. Plan early so you can know the right time to file your case.