For many of us, unexpected expenses can be the beginning of a financial downfall. Even the most planned out budget can be shattered by a major unexpected medical expense. Medical bankruptcy is a term often used when this unexpected expense arises and creates a domino effect in one’s finances. A Chapter 7 bankruptcy or a Chapter 13 bankruptcy can be filed to lessen the financial burden caused by medical debt.
Medical bills from hospitals, physicians, ambulance rides, rehabilitation programs and any other source of medical treatment are debts that are dischargeable in bankruptcy. Chapter 7 and Chapter 13 bankruptcies will eliminate medical debt.
Consulting with a Chapter 7 bankruptcy attorney in Springfield Missouri is an important step in understanding how medical debt can be resolved and ensure the proper timing of a bankruptcy filing.
Although many people have medical insurance to offset the cost of medical bills, the cost of medical treatment can still be unmanageable. High deductibles, difficulties in dealing with insurance companies, and charges for out of network treatment can make medical debt overwhelming.
One medical event that lands you in the hospital for a few days can lead to over a $50,000 bill. Even with insurance, you may still owe a significant amount out of pocket. Without insurance, you may end up with a bill that will be impossible to pay.
Healthcare costs are rising in the United States and are often one of the biggest expenses Americans must pay. If you are swimming in unpaid medical debt and feeling like you’ll never be able to pay them off, you’re not alone. Outstanding medical costs are a huge factor in many personal bankruptcies. Although it is difficult to determine just how many bankruptcies are triggered by medical debt, we would estimate it is a factor in nearly 50% of the cases that we file.
Frequently clients ask us if they can file a medial bankruptcy in Springfield, Missouri. Although, many bankruptcies are a result of medical debt, there is not a chapter of bankruptcy just for medical debt. However, medical debts are considered unsecured debt that can be eliminated in Chapter 7 and Chapter 13 bankruptcy.
If you’re thinking about filing a bankruptcy case to get a handle on your medical debt, schedule a free consultation in our Branson, Lebanon or Springfield, Missouri office. We can review your information for eliminating your medical debt. Sadly, one’s finances often take the priority over one’s health. Filing a bankruptcy may be the solution you need.