Your health should be the number one priority over your finances – but when it is, the results can sometimes be devastating. According to the Harvard University study, medical bills were the reason for half of all bankruptcy filings. In addition, three-quarters of those filing for bankruptcy had health insurance, at least when they first got sick. Thanks to high insurance costs, laws that allow insurers to allow the sick and incapacitated of some seriously ill citizens to continue their health insurance while working, the study confirms that as many as 1.5 to 2 million Americans could each declare medical bankruptcy. years only because of a serious illness.
Medical debt is similar to unsecured debt meaning there is no guarantee available for the creditors to take back. But without filing a medical bankruptcy or other security, medical debt can be tied to the collateral you do own. After several years of due hospital or insurance company bills can garnish your earnings and claim a portion of your assets in a home, business or additional precious assets.
If you feel overwhelmed because of medical debts, a bankruptcy lawyer can help you in that case. If you find yourself unable to pay your medical bills but need to continue considering the same doctors, an experienced bankruptcy attorney can help you set up your finances. In addition, prioritize expenses to ensure you can see the doctors you need and file a Chapter 7 bankruptcy later. If your debt is one-time expenses, an attorney can help you negotiate with your provider to set up a more sensible payment plan. And a bankruptcy lawyer can also protect you from pesky creditors during your treatments, so you can focus on what really matters: getting better.