Studies show that medical debt is the leading cause of bankruptcy in our country, as evidenced by the trending search phrase “problems paying my medical bills.” For the millions of Americans struggling with this burden, filing for bankruptcy with a local attorney can be a tool for gaining financial freedom. Read on to learn how Chapter 13 bankruptcy can help get rid of medical debt.
Medical debt and the threat of personal bankruptcy for unaffordable healthcare have surfaced as headlines in the recent mass shooting in Aurora, Colorado. Whatever the gunman’s intentions were, he likely did not mean to call attention to the tragedy that this country’s citizens face if they survive an encounter with the for-profit medical-industrial complex. The media is now reporting that many of the victims of the shooting were uninsured and that they face catastrophic medical debt for the unaffordable healthcare they received at local Colorado hospitals. Knowing that any uninsured family would face personal bankruptcy for their unaffordable healthcare, three of the five hospitals that treated the victims have agreed to waive or limit the victim’s medical bills. Fundraising efforts are underway to rescue these families from financial ruin.
I have previously written in this blog about the pernicious impact of medical debt and how it has become a leading cause of personal bankruptcy for American citizens.
Considering that medical bills so often drive people into a chapter 7 or chapter 13 bankruptcy, it is not surprising that individuals that have been injured in a serious accident often find themselves needing help from a personal injury lawyer and a bankruptcy lawyer.
The August 13 edition of the Orlando Business Journal reports that profits for Central Florida hospitals are up by 88% for 2009. The untold story is how medical debt and illness continue to be a primary cause of financial crisis for families who must resort to bankruptcy protection for their medical debts. While the health care industry in Orlando enjoyed this surge in profits, the American Journal of Medicine reported that illness and medical debt were the cause of 62% of all personal bankruptcies filed during 2007 in the United States. Most of these medical debtors were well educated, owned homes and had middle class incomes. Astonishingly, most were insured before their medical crisis. This Harvard Medical School study showed that since 2001, the number of medical bankruptcies had increased by nearly 50%.