Medical Bills: A Major Cause of Consumer Bankruptcy
Even in Texas, You can be just One Medical Bill Away From Financial Ruin
Regardless of how careful you may be with your finances, with the rising cost of health care, millions of responsible Americans may be just one accident or illness away from financial ruin.
According to The New England Journal of Medicine, medical bills may be the leading cause of bankruptcy filings. When these medical bills start accumulating, bankruptcy may be the best action you can take to regain your financial wellbeing.
Medical Bills and Lost Income Add up to Financial Hardships for Your Family
It’s been said that the financial consequences of medical bills and income loss due to illness may be catastrophic for Americans. While health insurance, government programs and disability insurance can help offset these costs, even middle class American families can find themselves drowning in debt after a brief trip to the hospital. While some bounce back and are able to recoup lost income after a hospitalization, accident or illness, others may not be able to make up for lost income or they may not be able to work at all.
Filing for Bankruptcy can Help You get a Fresh Start
Overwhelming medical bills, debt, creditor harassment and other financial stress factors can impact your finances, health, job performance and relationships. Bankruptcy is often the best (or only) way to wipe out medical bills and healthcare-related debts. Filing for bankruptcy can give you a new start and a way to recoup your financial help. In most cases, your medical bills can be eliminated.
For example, in a Chapter 7 bankruptcy, medical debt is treated as a nonpriority unsecured debt. There is no limit on how much medical debt you can discharge. An experienced Texas bankruptcy lawyer can help you through the complexities of bankruptcy disclosures and filings.
There are very specific rules about when and how these debts may be wiped clean. That is why it is so important to consult a lawyer who understands the nuances of which debts can and cannot be eliminated in bankruptcy.
Ask an Attorney at Oliva Law Whether Bankruptcy in Texas is Right for You
The Oliva law firm helps people in Brownsville, McAllen, Harlingen, Corpus Christi and throughout the Rio Grande Valley get a fresh start with bankruptcy and other debt management strategies. We can help you determine if bankruptcy is right for your specific situation.
About the Author: Marcos Oliva Marcos Oliva is the principal attorney at Oliva Law. He is admitted to practice law in the State of Texas, the United States District and Bankruptcy Courts in the Southern District of Texas, and the United States Patent and Trademark Office.
Jan 24th, 2019