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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.
0 Interest Balance Transfer Offers
Access to credit reports is difficult to obtain; the government offers each person one free look per year at their credit report. Since recordings change frequently, one view per year is not enough for those who are truly concerned about their credit. Ordering a credit score report from other trusted companies on the web is advised for continual monitoring. Here is a quick review of important facts about why monitoring credit reports regularly is so crucial:
1. Access To Unknown Reports
Recordings may be reported that the consumer is not even aware of. Everyone has forgotten various bills for things they have signed up for, such as monthly subscriptions and various types of membership clubs. Some companies with high membership or subscription fees may report items which are severely past due and have accumulated a large amount.
2. Improving Chances Of Success For Those Seeking Employment
Many times different items may be added to a credit report which will cause serious problems. Those seeking a job will find that undesirable recordings on a credit report may result in disqualification for a position applied for. In today’s tough economy, knowing what is on one’s credit score is crucial to avoid being disregarded for good jobs.
3. Discovery Of Mistakes
With the rising popularity of identity theft, monitoring a credit report may save the consumer from costly hassles. While it is possible to stop, catch and prosecute criminals responsible for this, the process is lengthy and usually requires large amounts of out-of-pocket money from the victim. Catching mysterious isolated reports before they materialize into a long list is highly advised to protect one’s identity.
4. Working On Credit Improvement
Due to the current economic crisis, excellent credit is needed for approval of credit cards and loans for vehicles. By working to contact creditors and resolving issues recorded on a credit score report, the consumer will enjoy an increased score and removal of undesirable records.