Doctor bankruptcy – bankruptcy due to medical expenses

Your health must come before your finances – but the results can sometimes be devastating. Medical bills make up half of all bankruptcy filings, according to a Harvard University study. In addition, all three-fourths of these bankruptcy filings had health insurance, at least when they first fell ill. Thanks to high insurance fees, laws that allow insurers to provide full-time health insurance for the sick and critically ill, the study confirms that up to 1.5 to 2 million Americans can file for bankruptcy each year just because of a serious illness.

Medical debt is similar to unsecured debt, meaning there is no guarantee that creditors can withdraw. However, without filing for medical bankruptcy or other collateral, medical debt could be tied to the collateral you hold. After a few years of paying hospital or insurance company bills, it may be possible to garnish your earnings and claim some of your equity toward a home, business, or additional costly assets.

If you’re feeling overwhelmed by medical debt, a bankruptcy attorney could help you in this case. When you realize you can’t afford to pay your medical bills and instead have to consider the same doctors over and over again, an experienced bankruptcy attorney can help you set up your finances. Additionally, you should prioritize expenses to ensure you can see the doctors you need and file for Chapter 7 bankruptcy down the line. If your debt is a one-time expense, an attorney can help you negotiate with your provider to come up with a more reasonable payment schedule. And a bankruptcy attorney can also protect you from irritating creditors while you undergo treatment, so you can focus on what matters most to getting better.