Medical Debt Can Be Debilitating, Bankruptcy May Offer Relief

Medical Debt Can Be Debilitating, Bankruptcy May Offer Relief

Written by  in category 
January 1, 2013

Medical costs are one of the main factors contributing to the need for bankruptcy relief in the United States. In fact, according to a study by researchers with Harvard Law School, medical debt accounts for over 62 percent of all bankruptcies.

The researchers surveyed over 2,000 individuals who filed for bankruptcy in 2007. Filers accumulated the debt either due to unaffordable medical bills or a loss of income due to an inability to work because of a disease or disability. Common medical causes for debt included multiple sclerosis, diabetes, injuries, stroke and heart disease.

The study also found most filers were middle aged, middle class, college educated adults. In addition, three quarters of these individuals had health insurance at the time the debt accumulated.

Tips to avoid medical debt

A strong health insurance plan can help provide a buffer against debilitating medical debt. Those in the study who had insurance but still needed to file for bankruptcy often had an inadequate level of coverage. This can be avoided by researching health insurance plans and choosing one that best suits your medical needs. It is also wise to choose a plan with National Committee for Quality Assurance accreditation.

Once the right plan is in place, follow the rules. Insurance companies often provide full coverage to in-network providers. Review the plan before scheduling appointments to make sure the provider you choose to see is fully covered.

If medical bills still become unmanageable, contact the provider and attempt to negotiate the amount owed. They may be willing to set up a payment plan or even reduce the bill.

Finding relief through bankruptcy

Even after these precautions are taken, medical debt can become debilitating. In these instances, bankruptcy may offer a needed fresh start. Bankruptcy laws are designed to protect people that can no longer manage their bills, either by liquidating assets to pay debts or developing a more manageable payment plan with creditors.

There are two main types of bankruptcy used by individuals who need help managing their debts: chapter 7 and chapter 13.

A chapter 7 bankruptcy petition liquidates all of the filer’s assets in order to pay off the debt. In situations where the debt is based in medical bills, the debt is discharged.

A chapter 13 petition creates a repayment plan that spans three to five years. The debt is categorized and paid in order of importance. Typically, medical debt falls low in the order of importance, similar to credit card bills, while child support payments and home mortgages are some of the first debts repaid. Debts that are not paid off upon completion of the court approved repayment plan are generally discharged.

Determining if bankruptcy is the right step for your financial future is difficult. Contact an experienced bankruptcy attorney to discuss your situation and better ensure your legal rights are protected.

394 Responses

  1. Hurrah, that’s what I was seeking for, what a material!
    existing here at this web site, thanks admin of
    this website.

    my blog – 스포츠토토 검증

  2. Hi, Neat post. There’s an issue along with your web site in web explorer, may
    test this? IE nonetheless is the marketplace leader and a large component to other
    folks will leave out your excellent writing due to this problem.

  3. Great blog here! Also your web site loads up very fast!
    What host are you using? Can I get your affiliate
    link to your host? I wish my web site loaded up as fast as yours lol

  4. Wonderful beat ! I wish to apprentice while you amend your website, how can i subscribe for a weblog
    website? The account helped me a applicable deal. I had been a little bit acquainted
    of this your broadcast offered brilliant transparent concept

  5. I have learn a few good stuff here. Definitely value bookmarking for
    revisiting. I surprise how much attempt you set
    to create one of these fantastic informative web site.

  6. Hi my loved one! I want to say that this post is amazing, great written and include approximately all important infos.
    I’d like to look more posts like this .

  7. А片 says:

    There’s definately a great deal to learn about this subject.
    I really like all of the points you have made.

    my page; А片

  8. เว็บสล็อตออนไลน์ที่มีรวมเกมจากทางค่ายjoker123 [jokergamingvip.com] มากกว่า 200 เกมส์เลือกเล่นได้อย่างจุใจ ซึ่งทางเรานั้นเป็นสล็อต เว็บตรงไม่ผ่านเอเย่นต์ที่มีโปรโมชั่นสล็อตออนไลน์มากมายตลอดทั้งปี ไม่ว่าจะเป็นสมาชิกเก่าสามารถเลือกใช้ได้ทุกคน ไม่ว่าจะเป็นโปรโมชั่นฝาก 20 รับ
    100 รับรองคนทุนน้อยก็สามารถทำเงินได้ง่ายๆกับค่ายสล็อตแตกง่าย 2021ได้แน่นอน ทั้งยังฝาก-ถอน ออโต้รวดเร็วภายใน1 นาที
    บริการตลอดทั้งวัน ซึ่งเกมสล็อตSLOTJOKERมีทั้งโบนัสมากมายที่จะทำให้ทุกท่านได้รางวัลแจ๊คพอตแน่นอน คลาดโอกาสไม่ได้อีกแล้ว สนใจสมัครสมาชิกใหม่ วันนี้
    รับโบนัสทันที 50% พร้อมลุ้นรับ
    แจกฟรีเครดิต สูงถึง
    10,000 บาท ทำเทิร์น 2 เท่าก็สามาถถอนไม่อั้นได้เลย มาเป็นคนรวยกับเรา jokergamingvip.com ได้แล้วทุกวัน เว็บที่รวมทางเข้า joker,ทางเข้า
    slot joker123,ทางเข้า โจ๊กเกอร์ไว้ในที่เดียว ไม่ว่าใครก็สามารถเข้าเล่นได้ เราได้เพียงแค่สมัครสมาชิก และเรายังมีระบบทดลองเล่นสล็อตโจ๊กเกอร์ ที่เราจะให้เครดิตฟรี
    ไม่ต้องเสียเงินแม้แต่บาทเดียว หรือจะเข้ามาอ่านบทความที่มีวิธีเล่นสล็อตออนไลน์แจกฟรี อัพเดทใหม่ทุกวันไม่ควรพลาดโอกาสดีๆแบบนี้ มาเล่นเกมสล็อตSLOTJOKERได้ทุกวัน ถอนเงินได้จริงปลอดภัย 100%

  9. If some one wants to be updated with latest technologies afterward he must be go to see this web
    page and be up to date every day.

  10. Hey! I realize this is sort of off-topic but I needed to ask.
    Does managing a well-established blog such as yours take
    a massive amount work? I’m completely new to operating a blog but I do write in my journal on a daily basis.
    I’d like to start a blog so I can share my personal experience and feelings online.

    Please let me know if you have any kind of recommendations or tips for new aspiring bloggers.
    Appreciate it!