Christopher Todd Morrison, P.C.
Affordable Bankruptcy
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Medical debt can be conquered under the Bankruptcy Code

There seems to be some sort of impression on the internet that bankruptcy follows some kind of lavish spending spree that got out of hand. While oppressive credit card balances can cause a great deal of strife, most consumers work hard to manage their bills. The days of cash only purchases, or the use of a checkbook on a daily basis with the regular balancing process, have given way to the use of plastic.

Debit cards and credit cards are frequently the only access to currency many consumers have in their wallets. Smartphone technology is also replacing cash. Alongside these day-to-day processes, consumers live in a fluid economy. The loss of a job, a reduction in hours, divorce and myriad other factors may place pressure on a household budget. However, medical debt remains a substantial factor in the need for many consumers to seek debt relief under the Bankruptcy Code, according a recent account in USA Today.

Medical debts can come from an emergency

Medical emergencies are not necessarily tied to the economy. It is difficult to imagine a realistic basis for linking a car accident to the nation’s gross domestic product numbers. Serious illnesses can arise in good and bad economies. While individuals and families may do all that they can, either through their employer or privately, to maintain health care coverage, medical insurance often comes with high deductibles, exclusions or simply low coverage levels for significant hospital bills.

A recent news report indicates that the Kaiser Family Foundation notes more than 25 percent of all adults across the country have difficulty keeping up with medical bills. Moreover, the foundation says that in 2014, 40 percent of people in the country saw their medical bills increase. Medical bill are frequently the straw that breaks the camel’s back related to financial stability. Medical debt can cause strains that increase other forms of debt.

Often, an individual may try to chase medical debt with credit cards, leading to increased, high interest, credit card balances. In other situations, when medical bills become oppressive, healthcare providers may turn to aggressive debt collection practices on the medical bills alone, causing anxiety and financial hardship for the individual.

Medical bills are generally dischargeable in bankruptcy. The Bankruptcy Code provides an effective method for individuals and married couples to regain control of their budgets and obtain a fresh start. The technicalities of filing for bankruptcy may seem daunting. Speaking with a seasoned debt relief lawyer can help you to understand your legal options in regaining control of your money.

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