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Can Medical Bills Cause Bankruptcy?
Most bankruptcies occur for reasons beyond our control. As medical bills continue to soar to extraordinary heights, those who cant afford adequate health insurance have no choice but allocate their savings to vital treatments and procedures. Once these individuals run out of cash, they must resort to bankruptcy. Heres a brief look at the correlation between bankruptcy and medical expenses in the U.S.
Rising Medical Costs
In recent years, medical costs have become more daunting than ever for struggling families and individuals. According to a study by health care consulting firm Milliman Inc., healthcare costs for the average family of four exceed $20,000. Those forced to file for bankruptcy often pay much more than thatespecially considering that an average night in a hospital costs nearly $2,000.
Health-Related Filings
According to the American Journal of Medicine, just over 62% of all bankruptcies in 2007 were filed because of insurmountable medical debtsup from 46% in 2001. After exhausting their savings, many people sell their cars, jewelry, and homes. After months of trying to keep up with medical debts, these individuals have no choice but to resort to bankruptcy.
How Bankruptcy Helps
Bankruptcy is a perfectly legal and honest way to eliminate insurmountable debtsespecially if those debts are of a chiefly medical nature. Chapter 7 bankruptcy can immediately eliminate most debts, including outstanding medical bills, but involves the seizure and sale of personal property. Chapter 13 bankruptcy can also eliminate outstanding debts, but only if the debtor adheres to a three to five-year repayment plan. Before selecting a bankruptcy option, its always a good idea to speak with an experienced bankruptcy attorney.
Millions of Americans are just one illness away from financial ruin, despite being in general good health and obtaining the best health insurance possible. In case of medical emergencies, however, the law permits bankruptcy as a strong safety net. If your medical bills are becoming insurmountable, consider bankruptcy as a solution to your financial problems. You can contact Gary Brenner Law Offices for any further questions.
Bankruptcy And Attorneys – Part 1 (Page 1 of 2)
Bankruptcy attorneys
Amongst bankruptcies, debtors usually opt for Chapter 7 and Chapter 13 bankruptcies, since they provide the maximum benefits. Bankruptcy is a process, which involves litigation and lawyers and courts. The process can be trying, and it is important to expedite the legal option to avail the maximum benefit. That is where the problem comes in. Individuals do not have enough experience or the expertise to conduct the process on own. Special help is needed. So debtors hire specialists who have the background, and the expertise to deal with bankruptcy courts. Individuals who can represent the respondents and avail a favorable result. Bankruptcy attorneys are such experts. Bankruptcy lawyers help to get debt relief, and provide valuable information, services, as well as advice to help the debtor find beneficial financial options. The part one of this article provides some general information pertaining to bankruptcy and bankruptcy lawyer.
Bankruptcy
The bankruptcy process can be briefly described as a special legal proceeding in which an exclusive court undertakes, and administers the fixed, as well as movable assets of a debtor for the benefit of the creditors. Typically a debtor, or any person or business, who is indebted and owes money to others, can choose to file for bankruptcy proceedings, so as to solve a financial situation involving a debt condition which is out of control, or alternately to prevent recovery of debts for a certain period of time, during which the individual or the business can make arrangements to repay the debt.
Bankruptcy legalities
The United States Constitution provides powers to the Congress to draft and execute laws and acts related to bankruptcy and bankruptcy related issues as per Section 8 of Article 1. Based upon this empowerment, the Congress passed the “Bankruptcy Code” in the year 1978. The act or the code has been amended several times over the decades, as per the changes taking place in the financial market, and the redemption capacity of the debtors. The actual procedure is governed by the body known as the Federal Rules of Bankruptcy Procedure. The body has set up special courts to deal with bankruptcy issues, as well as litigations. The courts are popularly known as bankruptcy courts. These courts operate depending upon their jurisdictions. The Federal body has set up official proceedings and working guidelines for these courts. There are rules dealing with various aspects of bankruptcy. The rules are specially created so the litigations can be carried out in an effective manner between individuals and business concerns. From the functioning point of view, bankruptcy courts are appointed for each judicial district within the state. And litigations, as well as legal procedures are carried out with the litigants based upon the particular area or location of the registered business. All decision relating to the legal proceedings are taken by the judge, and he or she has several officers to aid the legal work. The majority of the bankruptcy litigations are administrative in nature, and are often conducted outside the court premises. In case of special chapters and issues such as Chapter 7, Chapter 11, Chapter 12, and Chapter 13, the administrative procedures are handled by a trustee appointed by the court to overlook the particular case.