Bankruptcy

Diagnosis: Medical Bankruptcy

By writer

Over 62% of all personal bankruptcies filed in 2007 had a medical cause. The newly coined term, ?medically bankrupt?, refers to those who have filed for bankruptcy with illness or injury being factors in their filing. Although a percentage of those filing under these circumstances were over the age of 65, many were females, often the head of a single-parent household whose husbands had abandoned their families.

This should not come as a surprise to any thinking person since women, who generally have lower incomes than men often have greater health care needs than men. Women face more unaffordable medical bills then do men and often delay or skip vital health care visits. Most people who filed for ?medical bankruptcy? were well-educated, middle-income earners who had health insurance.

In large part, the broken health care system in the United States is behind the devastating fact that just one medical crisis can leave a family in economic disaster. In the upcoming weeks of mid-summer 2009, President Barack Obama will be announcing major changes in health care for the entire country. Hopefully, this new plan will include codicils that ensure that women and families will not go bankrupt when they need medical care. With luck (and foresight) the Obama administration will guarantee that all low and moderate-income families will have adequate medical insurance with minimal out-of-pocket expenses. This will ensure that no family faces devastating financial loss as a result of illness or accident. Overwhelming medical expenses all too often lead to the loss of homes and essential savings.

It is possible than many who file for ?medical bankruptcy? do so even with relatively small medical bills. This is, in part, because some hospitals and medical practices refuse to make arrangements for installment payments. They are, increasingly, sending patients to collection over amounts as small as a few hundred dollars.

If you?re plagued by medical debt, chapter 7 bankruptcy may be a viable solution for you. Get in touch with a Legal Helpers attorney and start getting your life back today.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on July 16, 2009 (boomark / email).