Law Offices of David Freydin Articles Medical Bills and Bankruptcy

Medical Bills and Bankruptcy

By Glanzer & Associates, P.C.  Apr. 4, 2013 9:05a

An unforeseen illness or injury can lead to spiraling medical expenses which can severely endanger one's financial scene. Add to this factor the loss of work time that may be involved for the ill or injured person, especially if they are a major provider for the family, and the financial scene can get even worse. That is why medical and hospital debts are among the most obvious and leading factors that can lead to the need for a bankruptcy petition. According to a study issued in the American Journal of Medicine, medical debt is a contributing factor in 62 percent of all personal bankruptcy cases in this country. In close to 75 percent of these cases, the bankruptcy filers have health insurance. Many health insurance policy holders have plans which include large deductibles or they may have significant co-payments. In some cases, loopholes in the policies prevent them from covering certain conditions, illnesses, or treatments, leaving policyholders responsible for their costs.

A Chapter 7 bankruptcy filing can discharge medical debts, which are unsecured debt. Thus, those who have accumulated overwhelming medical expenses may be eligible to wipe them out through a Chapter 7, which is a liquidation type of personal bankruptcy. For those who are still undergoing expensive medical treatments or care, waiting until the treatments are complete is suggested since you will not be able to file again for a Chapter 7 for eight years. For those who are not eligible for a Chapter 7, a Chapter 13 filing may be a way to wipe out medical debt, since after the completion of your Chapter 13 repayment plan, any remaining unsecured debt is generally discharged.

Bankruptcy Representation in Chicago, Illinois

Discussing your financial situation with an attorney who focuses on bankruptcy law in your area can be a valuable way of finding out how the laws and regulations will apply to you. At Glanzer & Associates, P.C. you can get the advice and guidance you need for your unique situation from an attorney who deals with bankruptcy cases every day in the Chicago bankruptcy courts. Mr. Glanzer can advise you on all aspects of bankruptcy, creditor harassment, alternatives to bankruptcy, rebuilding your credit, and more. With his experienced help, you can rest assured that your case will be handled properly and thoroughly, avoiding any complications or legal problems.

Contact the firm to arrange for a free bankruptcy evaluation, which is the first step in making an informed decision about how to resolve your medical debt or other overwhelming unsecured debt. You could be well on your way to a brighter future, one in which you have regained control of your finances, by doing so.

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