Medical Expenses And Bankruptcy

Unfortunately, America’s current healthcare system excludes millions of people. Regardless of the reason, these Americans are at high risk of accruing thousands of dollars in medical debts. In the event of an emergency, uninsured patients are forced to pay out of pocket for the services they receive. In many cases, they owe thousands of dollars, because the price of emergency treatment is exceedingly high.

Medical Expenses and Debt

When uninsured civilians require emergency medical care, they typically check out of the hospital with a bill that’s at the very least three digits, if not four. For most people who do not have health insurance, this is not an easily attainable chunk of cash. Payment plans, credit cards, and interest rates begin to factor into the equation, frequently over-complicating and increasing the patient’s amount due.

Medical debt is a startlingly common problem for American families.  A national survey estimates that approximately 77 million, or 37% of adults, have difficulties paying for medical bills, have accrued medical debts, or both.  One out of seven people asked claim to have made “significant lifestyle changes” as a result of their medical debts.

How Bankruptcy Can Help

If you are in debt over your head because of costly medical care, you do have options. It is estimated that approximately 40% to 50% of all personal bankruptcies are caused by medical debts. While filing for bankruptcy is often perceived as a concession, or “giving up,” this is a misconception. Bankruptcy can help people resolve their debts and start anew. Filing for bankruptcy offers the following benefits:

• Consolidating debts into a manageable monthly payment
• Discharging most, if not all, debt
• Stabilizing or reducing interest rates
• Creditor harassment will cease
• Halt repossession and wage garnishment

While the above facts are true, there are some types of debt that are non-dischargeable. Student loans, some taxes, child support payments, criminal fines, liens, mortgages, and other secured debts will survive bankruptcy procedures.

Finding a Lawyer

Filing for bankruptcy is a complicated and stressful process that may be alleviated with the help of an experienced bankruptcy attorney, who can help you with the proceedings.

If you are struggling to appease creditors and your debts seem irrevocable, you should speak with a bankruptcy attorney. To learn about the ways in which bankruptcy can help you recover from financial hardships, such as medical expenses, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. today.