Using Bankruptcy Medical Bills To Your Advantage

Nowadays, medical treatments are priced five times more than they are used to be, even when you acquire them in the less expensive and less popular hospitals. Although people tend to avoid going to hospitals as much as possible, especially those who are without health insurance, there are circumstances that still lead them to the hospital doors. If truth be told, filing for bankruptcy medical bills is not a bad thing. In fact, it is considered to be an ideal financial option for those who are unable to pay their medical bills. Here’s how you can make the most out of bankruptcy.

Tip #1- Ask for the detailed hospital expenses. Even in the age of computers, it is still possible to make mistakes. Hence, it is important to ask for an itemized list of your hospital bills. This way, you can ensure that you’re paying only for the medical treatments that you have been given. You can also reduce the cost that the government has to pay once you file for bankruptcy.

Tip #2- Don’t be hesitant to ask for help. People tend to be scared of filing for bankruptcy. What they don’t know is that it is one of the best options when you’re faced with steep medical bills. You will no longer have to work on being qualified for various organizations and charity cases. In fact, you will no longer have to dread picking up the phone or receiving letters from the hospital or your creditors. Once you file for bankruptcy medical bills, most of your debts will be cleared, allowing you to live with a clean slate once again. However, it is important that you ask for advice and assistance from bankruptcy lawyers. They can help you keep the bankruptcy process as smooth-sailing as possible. They can also help you determine the right steps to take after bankruptcy has been filed.

Basics of Medical Bankruptcy

Have you heard of the medical bankruptcy? Well, you might think that this is all about being insolvent due to medical issues alone, and filing a ‘medical bankruptcy’ because of it. I cannot blame you for thinking that way because I also had the same first thought. It is a help for everybody, therefore it is a must that you have at least the basic knowledge about it. To help you be informed about this topic, here is some of the basic information regarding it.

Medical bankruptcy is a general term used to refer to the reason why a people need to file a bankruptcy. Actually, this is not a legal term. According to the its rules, if you are to file a medical bankruptcy, you need to either file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. In this filing, you need to comprise all your debts including all your medical debts and other unsecured loans. After some examination and it is proven that you are insolvent, they will free you from all your debts and will be declared into bankruptcy. When you file for a certain bankruptcy, you are required to list down all of your creditors, including your medical bills. This only clear up that ‘medical bankruptcy’ is not all about your medical debts.

Based on the statistics, provided by an article in CNN, medical debts is one of the basic reasons why people file bankruptcy. As a matter of fact, about 60% of the filed bankruptcy is due to medical issues. And almost all of these 60% are the single mothers and elderly.

Having health care insurance is not insurance at all. According to some medical bankruptcy statistics, almost 80% of the bankruptcy filers have insurance. This may be due to the fact that, even people have health insurance, they still bear most of the payments for the bills which forces them to file for bankruptcy.

Some of the people think that when you file a bankruptcy, doctors can refuse to cure you. Well, according to the federal law, those hospitals receiving subsidy from the government do not have the right to refuse from accepting a patient who had filed a bankruptcy. More often than not, the doctor and the patient are making agreement on the amount that the patient can afford to pay the doctor even he had suffered from bankruptcy.

Medical Bankruptcy is available for all who needs and who seeks for financial help. But I am advising you that filing it must be your last resort. This is not just a simple way for you to escape from your creditors and debts. It must be filed if you really do not have a choice and you can’t really answer for your obligations.

It is undeniable that only a few really had the knowledge about this fact. As a matter of fact, this is a right of all individuals; therefore you must have the knowledge about it. In all cases of life situation, being well informed is one of the basic keys in giving solutions to the problem you thought will never be solved forever. The facts that I have presented are just the basics, if you wanted to have a full grasp about medical bankruptcy, research and be informed!

Bankruptcy Can Eliminate Medical Debt

The cost of medical care continues to rise and the inevitable result for countless individuals and families is financial ruin. Despite all the talk of sweeping changes in legislation and universal health care for all, there is currently little or no relief for many of these people. Fortunately, there is a way to get out from underneath crushing medical debt.

In nearly all cases, filing bankruptcy will eliminate medical debt. When deciding if bankruptcy is the best way to deal with your medical bills, timing is the most crucial element. Since medical issues are unique to each person, the best advice is to consult a qualified bankruptcy attorney in your area.

Generally, during an initial consultation, the attorney will determine, first, whether your situation warrants bankruptcy and, second, which type of bankruptcy best fits your circumstances. The two most common types of bankruptcies individuals can file are Chapter 7 and Chapter 13.

In Chapter 7 bankruptcy, medical bills are typically discharged and you will be relieved from your overwhelming medical debt. Once the bankruptcy petition is filed, all billing departments for medical providers must stop calling you, writing you, or taking any other steps to collect a debt from you. If the medical provider has assigned or sold the debt to a collection company, the collection company must also stop all attempts to collect the debt.

Medical bills in Chapter 13 bankruptcy are treated similarly to the way they are treated in Chapter 7 bankruptcy, in that medical providers and debt collectors must not engage in any attempt to collect the debt. Additionally, debtors are prohibited from reporting to a credit agency or contacting third parties regarding the debt.

Bankruptcy Can Be Used to Release Liens

Finally, if you have been sued by a medical provider or a debt collector for medical bills and a judgment has been entered against you, you need to know that the judgment functions as a lien against any real estate you own. This can affect your ability in the future to sell your property or refinance an existing loan. This lien can be “avoided” inside a bankruptcy. In other words, the bankruptcy judge has the power to make the lien go away forever. All judgments, including judgments for medical bills, can also cause your wages to be garnished and/or your bank account to be frozen. If this has already happened to you, you should seek legal counsel immediately. If this hasn’t happened yet, seeking legal counsel right away can prevent it..

To summarize:

Medical bills can be discharged under a chapter 7 bankruptcy and chapter 13 bankruptcy.
Due to the nature of medical care, each person’s situation is unique and you should consult an attorney immediately if you are considering bankruptcy.
Filing for bankruptcy will stop all collection activity and give you a fresh start.
If you have been sued and a judgment has been entered against you, the judgment serves as a lien against real estate.
If a judgment has been entered against you, your wages and bank account are subject garnishment.

Contact a bankruptcy attorney to discuss your options and how bankruptcy can help you get out from under your medical debt. Remember, medical debt causes more than 60% of all bankruptcies. You are not alone.

Sam Marks graduated from Drake Law School after completing undergraduate work at the University of Iowa. After passing the bar, he developed a general law practice that included work in criminal, family and juvenile law. As time passed, he began focusing specifically in the areas of bankruptcy and consumer protection. Sam is frequently asked to provide lectures to attorneys, business professionals and the public on the topics of bankruptcy and consumer protection and how these issues affect other aspects of the law. He enjoys these presentations and the opportunity they provide to discuss current events the legal system.