Hafemeyer Law

Illness and Bankruptcy

Contrary to popular belief one of the leading causes of bankruptcy filings isn’t credit card debt. In fact, high medical bills are the reason individuals seek relief in the courts in approximately 62% of cases.

A recent study has shown that cancer patients are twice as likely to file bankruptcy. This statistic is higher for younger individuals who are at an even greater risk of financial distress when diagnosed with severe illnesses. These types of diagnoses are unpredictable and almost impossible to plan for at any age. However, younger patients are less likely to have financial reserves or assets to cover mounting medical bills.

Remarkably, the majority of those that file bankruptcy have health insurance due to loop holes, high deductibles and treatments that are not covered under many health insurance plans. Individuals whose lives have been turned upside down by illness are suddenly faced with mounting medical bills, along with an inability to pay the large sums due to medical practitioners for treatments required to fight the disease.

To compound the health crisis, many individuals who are faced with increasingly high medical bills are unable to work during treatment. This inability to work increases the financial stress and makes it even more difficult for individuals to pay the mounting bills.

Like most consumer debt medical debt is typically dischargeable in bankruptcy. For more information on obtaining relief from high medical bills seek legal counsel to discuss if bankruptcy is a viable option.

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