When it comes to filing for bankruptcy medical bills top the lists for the reason that this step is taken. Even those lucky individuals who have medical insurance coverage often find that co-pays, deductibles, and expenses that are not covered can add up to a very substantial amount. A study that was performed in 2007 showed that roughly 9 out of 10 bankruptcy cases were due to medical debt, and this amount was at least $5,000 in most cases.
A common response by home owners is to mortgage property to try and cover the medical bills and expenses that must be paid. This is often a big mistake and only a temporary solution at best. Eventually it may become impossible to pay the mortgage payments that are due and still afford the medications and medical care needed. This step could end up costing you your home, and you could still have a large amount of debt in this category to deal with.
Health insurance is often viewed as a lifesaver when a major injury, illness, or disease hits. This is not always the case though. Often a policy may only provide limited coverage, and this is only paid after large deductibles and copays have been met. The best insurance plans will only cover around 60%-80% of any costs that you incur, and this is also after the other payment requirements have been met. This could leave insured individuals on the hook for thousands of dollars in some situations.
Consumers are also adversely impacted by medical care and prescription drug costs. A visit to the physician could run from $10 to $50, and a specialist will require a higher payment amount from the individual before any coverage normally kicks in. A large number of seniors may have uninsured prescription drug costs that could be $1,000 or more a month, and this is the amount that must be paid on top of the payments by the health insurance plan.
A catastrophic disease can mean tens of thousands of dollars or more in medical debt, and this is for individuals who have some type of health insurance. A simple cancer diagnosis could mean testing and diagnostic tools that are priced around $25,000 in most markets. This is just to diagnose the cancer, and does not cover any of the treatment costs that may be involved once a diagnosis has been made. Some chemo drugs can run $10,000 or more per cycle, and these costs are not always covered by the health insurance plan.
If you are facing medical debt and feel like there is no way out you need to know that there is help available. Bankruptcy can help you eliminate all medical debt in most cases, and can also help with other types of consumer and business debts as well. Chapter 7 can discharge medical debt and give you a brighter future. Chapter 13 can help you arrange reasonable payments for a certain period, and then any remaining medical debt is usually discharged when the case is closed out.
You could resolve all of your debt problems and get a fresh financial start by filing for bankruptcy. There are some requirements that must be met under each chapter of the bankruptcy code. A bankruptcy specialist can help you determine which chapter you are eligible under and offer legal advice on the entire bankruptcy process.