All medical bills are eligible for either a full discharge under Chapter 7 of the bankruptcy code, or for restructuring under Chapter 13 if you do not qualify for a Chapter 7.
The rising costs of healthcare have been a contributing factor to the overall increase in the number of bankruptcy filings in the U.S. A study published in the journal, Health Affairs, in June, 2005, reported that over half of U.S. bankruptcies were the result of healthcare-related debt. Such circumstances are not limited to those without insurance. An unexpected serious illness and the deductibles, co-pays, policy loopholes and other uncovered expenses can result in an insurmountable burden.
In July, 2007, Professor Elizabeth Warren from Harvard Law School testified before the House Committee on the Judiciary that, “the current health care finance system is bankrupting hard-working, play-by-the-rules American families”.
Decent jobs are not safeguards against financial disaster. Fortunately, relief is available through the bankruptcy court.
Written by Scott Reece
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