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Are Medical Bills One Reason for Filing Bankruptcy?

Are Medical Bills One Reason for Filing Bankruptcy?
"Who do you believe declares bankruptcy? Why do you believe individuals are declaring bankruptcy? The answers to these questions may appear simple at first glance, but a closer examination reveals that there is no single reason why someone files for bankruptcy. Consider a typical family that is living within its means and doing ""everything right."" They surely wouldn't require bankruptcy protection, wouldn't they?We would first expect them to have health insurance. With health insurance, their medical expenses should be covered, correct? This would depend on the sort of plan they have and the nature of their medical condition. How much is the deductible? What is the co-payment proportion? With the majority of plans, the co-pay percentage is 80 to 20 percent. This means that after the deductible is met, the insurance pays 80% of the bill and the family pays 20%. This is effective for office visits and modest outpatient procedures. However, if you suffer from a serious health condition, your 20% of a $100,000.00 bill would be $20,000.00. This is in addition to your deductible. This family, who typically saves for a modest vacation, can they now afford this bill? What if the individual with the serious health issue is no longer able to work? Then it may be necessary to consult with a bankruptcy attorney. According to studies, 62 percent of all bankruptcies involved medical expenditures and illness-related issues. 78% of the 62% of registrants who had health insurance. The majority of these individuals were well-educated middle class families. Several studies indicate that the majority of families are one significant health problem away from declaring bankruptcy.Given that many families are one significant health issue away from declaring bankruptcy, anyone can find themselves in this position. Another factor is that the majority of health care facilities employ their own collection agencies or services. Your enormous health care bill is regarded like a missed credit card or mortgage payment. They employ the same strategies as other creditors when it comes to debt collection. They call the person and harass them. The court action they file may include garnishment. Once garnishment begins, you may fall behind on your mortgage, auto loan, and even have difficulty purchasing gas and supplies. Consider bankruptcy at this time to see if it can assist you. Due to the complexity of bankruptcy law, you need a competent bankruptcy attorney to help you evaluate your options. When illness and medical expenditures threaten your financial future, do not let the stereotype of who files for bankruptcy prevent you from obtaining the protection you deserve.
" - https://www.affordablecebu.com/
 

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"Are Medical Bills One Reason for Filing Bankruptcy?" was written by Mary under the Finance / Wealth category. It has been read 131 times and generated 0 comments. The article was created on and updated on 31 May 2023.
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