Author Box
Articles Categories
All Categories
Articles Resources

What to Do When Medical Bills Overwhelm You

September 27, 2011 | Comments: 0 | Views: 154

Medical bankruptcy may become the only option for a person, regardless of their current financial situation or what type of medical insurance they carry. The uninsured are at the greatest risk of falling into the deep pit of overwhelming medical debt. However, in this economy, with fewer employers offering comprehensive and major medical plans, the well insured are also vulnerable. This is because of something on their policies known as the deductible.

Everyone is vulnerable to catastrophe. When a person is admitted to the hospital for a critical illness or serious injury, initial treatment can cost in the hundreds of thousands of dollars, as in the case of a heart attack or multiple injuries. Long term treatments add to the cost and therapy even more. Medical bills totaling over one million dollars are not uncommon. Insurance will pay only the amount, less the deductible and the co-pay. So, for example, a $100,000.00 medical bill, assuming it is all initial treatment and care, is subject to 20 percent co-pay and a 10 percent deductible. That is approximately $30,000.00. Add to that therapy, corrective surgery, anesthesia and many other procedures and treatments all subject to the same deductions and you have a mountain of debt.

Bankruptcy, in the form of Chapter 7 or Chapter 13, is often an answer. Chapter 13 permits a person to keep any assets while paying off the debts in a three to five-year period. This may not be possible for debts of 50K or more unless the person can return to a high paying job. Chapter 7 removes the payment responsibility of the debtor and uses the sale of personal assets to pay off all or part of the debts. Chapter 7 is a good option in many cases. The filer keeps his home and car, furniture and clothes and can start over. A good bankruptcy attorney should be retained to navigate through the process and to protect you from creditors who refuse to play by the rules and continue to harass.

Will medical bankruptcy hurt your credit so badly that you will never be able to borrow money? Bankruptcy, although it is a mark on your credit that can last for ten years, is not the end of the world. Taking out a secured credit card with a bank or keeping one card current and out of the bankruptcy is a good way to start rebuilding your credit.

Want to learn more about medical bankruptcy?

Get more information:

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Medical Bankruptcy


Medical Bills Overwhelm


Major Medical Plans


Medical Plans


Medical Debt

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

At this time, there are many things that give a difficult to many individuals and also to families. It can be in the simple form of paying monthly bills and also the daily necessities of each family

By: Alison Gilbertl Finance > Bankruptcy Medicall January 29, 2012 lViews: 139

What are the reasons why you must file for an application of medical bankruptcy? Are you aware of this application in the first place? Are you interested to know more of this subject? If you do, then

By: Matt W. Campbelll Finance > Bankruptcy Medicall January 04, 2012 lViews: 143

High medical bills are among the numerous reasons why people file for bankruptcy. This is often the case in various cities in the US. The reason is very obvious; there's a high cost of health care

By: Jenel Murgl Finance > Bankruptcy Medicall November 24, 2011 lViews: 146

Food, shelter and clothing, these are the basic needs of humans to live. But with the kind of world that we have today, I think money must be part of the list that I have mentioned because almost

By: Alison Gilbertl Finance > Bankruptcy Medicall October 24, 2011 lViews: 144

Have you heard of the medical bankruptcy? Well, you might think that this is all about being insolvent due to medical issues alone, and filing a 'medical bankruptcy' because of it. I cannot blame you

By: Ralph A. Millerl Finance > Bankruptcy Medicall September 26, 2011 lViews: 147

Do you know what it takes to prevent a medical bankruptcy? What you need to understand is that in order to prevent a medical bankruptcy you need to...

By: Jackson Bryantsl Finance > Bankruptcy Medicall June 08, 2011 lViews: 138