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Medical Bankruptcy

Medical Bankruptcy
"""When most of us think of people who declare bankruptcy, we envision negligent individuals and families who failed to manage their finances responsibly. While this is frequently the case, it is not true for the vast majority of bankruptcies. In 2009, an estimated 62% of all bankruptcies were caused by excessive medical expenses. In 2001, only 42% of all bankruptcies were due to medical expenses, so it appears that more individuals are filing for bankruptcy due to medical expenses.

What is medical insolvency?

Technically speaking, a medical bankruptcy does not exist. Insolvency is insolvency regardless of the cause. Medical bankruptcy is merely a generic term that has been adopted to describe any bankruptcy caused by excessive medical costs. It includes insolvency filed because of direct medical expenses or mortgages taken out to cover medical expenses. Also included are bankruptcies filed due to a loss of income for medical reasons.

Why Bankruptcy?

Approximately 78% of those who seek bankruptcy protection are insured. Despite this, they have an average medical debt of $17,943. Those without insurance coverage owe an average of $26,971 more than those with coverage. You may question why they do not simply make payment arrangements in order to repay their debts over time. The answer lies within the industry's aggressive nature.

Instead of accepting payments over time, the majority of medical collection agencies prefer to pursue litigation swiftly. They frequently file lawsuits over absurdly small sums, sometimes for as little as a few hundred dollars. If you have numerous medical invoices, it is likely that they are not all owed to a single entity, but rather to multiple health care providers. Thus, it is not only possible but also highly probable that multiple creditors will sue you.

Since the majority of people who file for medical bankruptcy are educated homeowners, they are not accustomed to coping with lawsuits due to inability to pay bills. It is simple to imagine how they could quickly become overwhelmed by their circumstances and view bankruptcy as their only option.

Because medical bills are unsecured debts, creditors are left empty-handed in the absence of substantial assets. It appears that the aggressive manner in which these accounts are being collected may actually be working against the creditors.""

" - https://www.affordablecebu.com/

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"Medical Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 66 times and generated 0 comments. The article was created on and updated on 03 June 2023.
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