Unfortunately, the term “medical bankruptcy” is becoming widespread in our country. Indeed, Facing a necessary medical procedure without health insurance can cause severe financial hardship. In fact, even those who have health insurance can struggle to make payments. According to CNN Health and the American Journal of Medicine, 60% of personal bankruptcies are caused by medical expenses:
“Bankruptcies due to medical bills increased by nearly 50 percent in a six-year period, from 46 percent in 2001 to 62 percent in 2007, and most of those who filed for bankruptcy were middle-class, well-educated homeowners, according to a report that will be published in the August issue of The American Journal of Medicine.”
The basic rule for the treatment of medical debt in bankruptcy is as follows: medical bills are treated as unsecured debt and wiped out by filing bankruptcy just as credit card debt is. The extent to which the debt will be eliminated will hinge on what type of bankruptcy you file, however, most medical bills, no matter how large, will be eventually be discharged by filing bankruptcy. Even if you have health insurance, your medical debts are eilgible for discharge in bankruptcy.
If you have questions about bankruptcy, contact an attorney.