Bankruptcy is a tool used by many Americans to alleviate the crushing debt in their lives. Unfortunately, it’s not always the right choice, especially if it’s not going to eliminate or help you re-organize the type of debt you have.
But what about medical debt? If you’re struggling because of tens of thousands of dollars or more in unpaid medical bills, will bankruptcy help you resolve your situation?
In most cases, the answer is “yes.”
Filing for bankruptcy is one of the most effective ways to deal with crushing medical debt.
If you are facing catastrophic consequences because you cannot afford to pay your medical bills, bankruptcy can be used as tool to deal with the problem. It can help you put a stop to the endless debt collection calls and stop other debt collection efforts that are causing stress in your life.
Medical Insurance is Not Enough
Many people assume that because they have medical insurance coverage they will not need to worry about medical bills. And then something happens and they realize their insurance only gets them so far.
Even the best insurance policies won’t cover every single aspect of your medical care. And if you’re dealing with a serious illness or injury that runs up a bill of tens or hundreds of thousands of dollars in medical are, you’ll quickly learn how devastating your situation can get.
The problem can be even worse if you don’t have medical insurance coverage. At least insurance covers some of your bills and gives you a means by which to fight for a better resolution. Many people with health insurance have successfully argued they deserve more, but without medical insurance, you’re completely on the hook for all of your medical bills.
In many cases, people have medical insurance through their employers, but lose it because they lose their jobs. If a medical emergency comes at a time when you are without an income and have lost health insurance, your situation can feel downright desperate.
No matter the reason you don’t have insurance or enough insurance, you are not alone. Every day people face the dilemma of how they are going to deal with out-of-pocket medical expenses and many find their only option is to file for bankruptcy.
To learn more about what to do if you’re facing the loss of your medical insurance coverage, check out this article from Consumer Reports.
Your Health is the Most Important Thing
Worrying about financial issues when you are dealing with a medical emergency can set your recovery back. Stress can also lead to a variety of additional medical problems, creating a cycle of health-related financial consequences.
If you’ve found yourself drowning under medical debt and you have no idea where to turn, bankruptcy can offer a way out. Filing for bankruptcy can result in the discharge of your medical bills, which means you will no longer be legally obligated to pay them.
For more information or to learn how bankruptcy can help you if you are struggling with medical debt, contact the law office of Frank J. LaPerch, PC at 845.942.5500.