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Medical Bankruptcy

Medical Bankruptcy

According to a report from CNBC, more Americans are now filing for bankruptcy due to medical debt than ever before. Although most people think that medical bankruptcy only deals with hospital and doctor bills, it can also be the result of lost income related to an accident or illness. Even when a person has health insurance, the staggering cost of medical debt can exhaust a person’s entire savings.

During her time as a professor at Harvard Law School, Senator Elizabeth Warren conducted a study that showed medical bills were a significant factor in more than 50% of bankruptcy cases. Another study from Nerdwallet Health revealed that medical bills were a more substantial contributing factor to filing bankruptcy than credit card or mortgage debt.

If you are struggling to pay your medical debts, you should know that it can be discharged if you successfully file for Chapter 7 or Chapter 13 bankruptcy.

The following are facts about medical debt that you should consider if you are thinking of filing for bankruptcy:

  • Medical creditors are usually more willing to work with you than other types of creditors and debt collectors.
  • Medical debts generally remain with the billing department for as long as possible before they are turned over to a collector.
  • Some doctors and health care providers will allow you to make smaller payments each month.
  • Medical creditors don’t always report to credit agencies, so the debt might not have as much of an impact on your credit score as you might think.

Do you have more questions about how bankruptcy can help eliminate your medical debt? If so, call Bach Law Offices, Inc. at (847) 448-0025 to schedule your consultation with one of our attorneys.

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