Medical Bills

According to recent studies, a study shows that medical bills are behind in over 60 percent of bankruptcy filings for individuals with health insurance. In the majority of cases, the individual suffered a short-term illness resulting in time off from work, lost wages, with insurance only covering a portion of the medical bills, or debt was incurred on behalf of a third party such as an ailing parent or child.

Too often, individuals are forced into filing for bankruptcy for the simple reason that the medical collection companies is so inflexible and will not work out reasonable payment plans. Instead, hospitals, doctors, and medical collection agencies often file small claims lawsuits (those less than $10,000). These collectors are usually very aggressive and call you sometimes 20 times a day. I believe this will increase as many hospitals, doctors and other medical-related businesses turn their delinquent accounts over to collection agencies in 30 or 60 days rather than trying to give the consumer a chance to pay the debt.

Medical bills are unsecured debt, which makes them eligible for discharge in bankruptcy. However, it is important to remember that a bankruptcy will only discharge debt incurred prior to the date of filing. You will not be able to discharge future medical bills for eight years from the date of filing for your first bankruptcy, and for this reason it is important to discuss the timing of filing for your bankruptcy with the attorney.

For a free consultation about bankruptcy, contact us toll free at 800-491-7493.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.