Medical debt: It is a big problem in the United States with 1 in 3 Americans struggling to pay medical bills.
In fact, according to RIP Medical Debt, a non-profit that helps abolish medical debt, about 66% of those who file for bankruptcy say it was a contributing factor.
Filing for bankruptcy does provide some relief for medical debt, as there’s no priority afforded to medical bills – they can all be discharged in bankruptcy filings. But there can sometimes be undesirable consequences.
However, for families struggling under the weight of medical bills, bankruptcy is sometimes the only option.
• Your credit score will be impacted if you file for bankruptcy. That means you might have a difficult time buying a home.
• Some medical providers, especially individual doctors and small practices, might not want to accept you as a patient. Hospital emergency rooms ARE required to treat you, however, regardless of your ability to pay.
Health care costs are skyrocketing, into the trillions of dollars annually. This issue likely won’t go away any time soon. And about 60% of our clients who file bankruptcy have significant medical debt.
It’s not always the sole reason but it is frequently a factor.
It’s a financial stress for many families, both those that have and those that do not have insurance, as a significant illness or injury can create thousands of dollars in debt.
This will continue to be a significant financial concern for many Americans – especially older Americans – if the cost of medication or care rises and sends people into bankruptcy.
If you have questions or concerns about medical debt or if you are overwhelmed and are considering filing bankruptcy, the legal experts at Mina Nami Khorrami LLC can can help. Contact us today at 614-857-9590.