Sacramento bankruptcy & injury law blog

Medical Debt Bankruptcy

 Medical debt bankruptcy is filing bankruptcy due to medical bills. It is more common than most might imagine. According to a recent USA Today article, medical debt is the number one cause of filing bankruptcy in America. Sacramento is no different. It is a significant factor in forcing many bankruptcies.

The filing of a medical debt bankruptcy is normally due to factors beyond the filer's control. Namely, the filer's health. Getting medical treatment is not an optional cost. If you get sick you need to see a doctor. It's that simple.

As often is the case with a medical debt bankruptcy, insurance is partially to blame. Even those with medical insurance are not always fully covered. High deductibles cannot always be afforded. And when they can't, something has to give. Usually it's the patient's finances.

If personal savings were larger and more commonplace, perhaps such medical costs could be weathered. But they're not. Savings in America are bleak, and that's putting it mildly. The referenced USA Today story brings home this point. 69% of Americans have less than $1,000.00 in savings. The is a big factor in medical debt bankruptcy filings.

Fortunately for people who are forced into a medical debt bankruptcy, bankruptcy is effective eliminating the medical debt. As we all know, medical care is expensive, really expensive. That is why medical insurance is so costly. It is also why deductibles can be unaffordable. Without astronomical deductibles, premiums would be astronomical. But bankruptcy can eliminate medical bills. Medical bills are unsecured debts that can be discharge, or eliminated, in a bankruptcy.

Particularly problematic for those in need of a medical debt bankruptcy are medical bill collection practices. You would think medical bill collectors would be accommodating given the nature of the debt. But they are not. Some of the most aggressive collection measures are made by medical bill collectors. It's an unfortunate fact. Bankruptcy, though, is a tool that can eliminate that debt. It's something many in Sacramento might not expect to do. But it an option, and a good one if you need it.

Health Insurance Holes

Health Insurance Holes

Medical care continues to be one of consumers’ biggest costs. Understandably, then, medical insurance is vital. Health insurance holes, though, can leave some exposed. Health insurance may not cover some costs or other procedures. It may cover more but come with higher co-pays. No matter the cause, health insurance holes come with a cost. If you have medical care needs that exceed your insurance coverage, debt can follow.

According to a Harvard study documented in this story, approximately half of consumer bankruptcies are caused by medical bills. Health insurance holes often lead to medical debt. Debt that cannot be afforded.

Health insurance holesLike other forms of debt that can’t be afforded, bankruptcy may be a solution. Health insurance holes are a cause of potential debt. Like credit card debt, car repossessions or other unsecured debt, medical bills may prompt consumer bankruptcy. Unlike other forms of debt, though, medical care costs often come with a higher price tag.

If you have health insurance holes that result in uncovered medical bills, those bills are likely larger than your other debts. Tens of thousands of dollars in credit card debt can accumulate over years. Tens of thousands of dollars in medical care costs can accumulate over hours or days. If you are not covered by insurance, dealing with that debt is often impossible.

Given the costs, and repeated increases, in healthcare insurance premiums and co-payments, health insurance holes are increasingly inevitable. If you then need medical care for treatment not covered, debt is an obvious byproduct.

Fortunately, debt derived from medical care, whether through health insurance holes or otherwise, is dischargeable through bankruptcy. This means that if you have medical bills not covered by health insurance, you can eliminate them by filing bankruptcy. As health insurance costs continue to rise, bankruptcy option will offer the only resource to counter unaffordable medical bills.

Medical Bills and Bankruptcy

health care costs 2Medical Bills and Bankruptcy

Medical bills are the prime factor for filing bankruptcy in the United States. According to the Huffington Post, as well as numerous other sources, it is the main reason.

Medical bills prompt bankruptcy filings for a variety of reasons, not the least of which is the high price of medical care cost in America. Insurance availability is another ingredient. Though Obamacare has created more coverage in years past, costs have escalated, as have co-payments. The end result is more medical care debt income to cover it.

Medical care is not optional. At least it shouldn’t be. But in America it often is. Faced with the dilemma between medical care and unaffordable expense, bankruptcy may be a necessity. Bankruptcy can deal with medical care debt. But neglected medical care has no cure.

Medical care costs frequently overshadow other financial obligations which, in turn, can cause even further debt. Using credit cards to pay for medical care has become increasingly common. CareCredit is a credit agency devoted to medical care costs and treatment.

Medical care costs, too, often come with aggressive collection tactics. While it does not seem fair, often the most aggressive collection companies and agencies represent medical care providers.

Bankruptcy is an option to avoid your medical care costs and associated debts. Medical care costs and debts taken out to cover such debts are entirely dischargeable in bankruptcy. While there is seemingly no safety net for medical care, at least there is one for the associated debt.

Sacramento Bankruptcy: Medical Care & Prescription Costs

Sacramento Bankruptcy: Medical Care & Prescription Costs

Medical care and prescription costs are some of the most common expenses facing consumers considering bankruptcy in today’s economy. Costs for medical care and prescriptions are outpacing incomes, particularly fixed incomes. The retired and disabled are bearing the brunt of these increases and, with them, their buying power decreases by the day.

Prescription drug costs have exploded, leaving many without necessary drug treatment due to their inability to afford their prescription costs. Rising insurance premiums, co-pays and coverage gaps only exacerbate the problem. It’s not that something has got to give; something already gave.

Consumers are left in the lurch looking to provide for their health and, at the same time, afford it financially. This CNBC article paints the picture.

What then to do? Debt has become a byproduct of healthcare in America. If you can afford to repay the debt, you have a way out. If not, bankruptcy may be your only option. Though bankruptcy is a final straw alternative for many, it is valuable resource for many facing health care and prescriptions costs beyond their budget. Medical and prescription bills are dischargeable debts that are eliminated upon a bankruptcy discharge. Food for thought for those in debt due to healthcare.