The biggest expenses Indianapolis residents and their counterparts across the country have are related to healthcare. Indianapolis residents struggling with medical expenses are not alone. According to one poll, 15% of people will not be able to repay their medical bills, either in full or in part, in the next year. Outstanding medical debt is a major contributing factor to bankruptcy, with it playing a part in at least as 26% and as many as 62.1% personal bankruptcies.
Do I file for medical bankruptcy?
There is no such thing as medical bankruptcy, even though the majority debt a filer may be trying to get rid of through filing is healthcare related. When filing, a person is required to disclose all their debts, property, real estate, income, family income, and expenses. When it comes to bankruptcy, medical bills are considered the same as credit card bills, utility bills, and personal loans. All these, and other qualifying debts, are discharged when a bankruptcy is completed.
Does bankruptcy affect my medical care?
Many people hesitate to file for bankruptcy because they are worried about how it will affect their relationship with their doctors. However, federal law prohibits hospitals from refusing treatment to anyone who is unable to pay their bills. While medical providers are not bound by this, they rarely take this drastic action.
The cost of healthcare is going up, hitting more than $11,000 in 2018. Those who need to eliminate medical debt but do not know how to should consider consulting an experienced attorney to discuss their options. Personal bankruptcy, in the form of Chapter 7 or 13 bankruptcy, may be one way to move forward with their life.