What is a Medical Bankruptcy?

Bankruptcy often carries a certain stigma that filers are financially irresponsible or taking advantage of the system to avoid paying their bills. This is far from the truth, however, as many individuals who file for bankruptcy are responsible citizens who simply encounter unexpected financial difficulties. One example of this is medical bankruptcy, which is a common term for bankruptcy filing that stems mostly from unaffordable medical bills.
A 2013 study¹ showed that a whopping 20 percent of adults in the United States are having difficulty paying medical bills, and such bills are currently the leading cause of personal bankruptcy filings. Additionally, approximately 1.7 million Americans live in households that will likely file for bankruptcy in the future due to medical expenses. If you are living in a household with extensive medical debt in or around Long Island, New York, please do not hesitate to call the Law Offices of Ronald D. Weiss, P.C. at 631-271-3737 to discuss your options today.
Medical bills may not only weigh on your mind, but may also result in numerous and harassing communications from collection agencies, lower credit scores, depletion of your savings accounts, additional credit card debt, and struggles to cover your everyday expenses for your family. Some of the reasons that Americans suddenly find themselves facing medical debt include:

• Diagnosis of a serious disease or condition of a household member
• Unexpected accident that causes serious injury to a household member
• Loss of a job that also means the loss of medical benefits for the family

Many individuals or households that are facing medical debt do have health insurance. However, treatment for serious illnesses or severe injuries may easily exceed coverage limits or require services of specialists, equipment, or another treatment that is not covered by a particular policy. In fact, the previously mentioned study found that an estimated 10 million individuals struggle to pay their medical bills despite having year-round medical coverage.
Filing for bankruptcy due to overwhelming medical debt does not reflect negatively on you as a person. Often, bankruptcy is the most responsible choice to avoid falling further behind with your debtors and to allow you to start over with a clean financial slate. If you have medical debt, consult with an experienced bankruptcy attorney today for help.
¹ http://www.nerdwallet.com/blog/health/2014/03/26/medical-bankruptcy/