Bankruptcy Medical

Understanding Medical Bankruptcy

Most people are surprised to find that of the estimated $1.5 million bankruptcies that will be filed this year, 62% of them will be the direct result of medical issues. Even more surprising is the fact that of those filing for medical bankruptcy, over 80% actually had medical insurance. Despite this, they managed to rack up medical debts that approach almost $18,000! This is just $9,000 less than the amounts owed by individuals who filed for bankruptcy due to medical reasons that lacked medical insurance.

While $18,000 seems like a small amount of debt to cause a bankruptcy, part of the problem is the aggressive nature of the medical debt collection industry. When you default on a credit card debt, the chances of you being sued are actually quite slim. More likely is that the creditor will work with you to establish some sort of acceptable payment plan. Read more…

WHO: Millions Need Medical Bills Help

The World Health Organization has sounded the alarm on the need for medical bills help for at least 100 million people worldwide who were pushed into the economic deprivation annually because of a medical emergency or a lingering illness. This just shows that health care is not a unique problem of the United States so if you are now having a hard time coping with your medical debts, you are not the only one so there’s no shame in admitting you have a problem and asking for help.

The WHO (the health agency, not the rock band) also cited the need for a universal health care especially in light of the global economic crisis, breaking down of international barriers (and thus quick spread of transnational bacteria and viruses such as the bird flu) and world populations getting older. The report suggests that a prepayment plan is the most efficient way to include more families in the health insurance coverage. That means more people may have to pay more money to cover for those who need medical bills help. If you think only socialist countries share their resources, here are just some of the areas with prepayment plans: Japan, Chile, Mexico Europe and Thailand. Throw in there third-world countries like Mexico and Rwanda. Read more…

Paying Off Medical Bills the Christian Way

All across America, there’s a religious movement that aims to shoulder the costs of hospitalization through a simple system of sharing the wealth, according to the teachings of the bible to look after your brothers and sisters. If you are lucky enough to become a member of these religious cooperatives, paying off medical bills can become easier.

The program is anchored on the belief system that you are going to contribute to the kitty fund for the treatment of a co-op member with the understanding that if you are ever in the same position they will help you with your medical bills. The signing of the health care reform law,which grants exemptions to health ministries “pay or play” levies on health insurance. This is important because it allows religious co-ops f to avoid paying taxes on a “per-head basis.” Besides, the new law only follows what the Amish community has enjoyed throughout the years since they are not mandated to pay taxes for social security and health insurance. Read more…

Unpaid Hospital Bills Can Destroy Your Credit History

Question: I recently had an accident and broke my arm in two places. When I was discharged from the hospital, I found that my unpaid hospital bills totaled over $11,000. I have no insurance and have no employment at the moment so I couldn’t possibly make payments. Now, collectors are knocking on my door and calling me on the phone to pay up or they will destroy my credit score. What should I do?

Tom of Detroit, MA

The fact that your unpaid hospital bills have already been sent to a debt collection agency means you’ve squandered the chance of getting it reduced to a much more affordable level. It’s much more difficult to negotiate with debt collection agencies than it is with hospitals and doctors because they are paid by commissions or on retainer. Company success is also gauged by its capacity to collect the debts so this is very serious business. More than anything else, you will be made as an example. Read more…

Medical Bankruptcy – Does It Exist?

A bankruptcy that consists mostly of medical bills is often called a medical bankruptcy. This type of bankruptcy is not an official term, but lenders may look at a bankrupt person more favorably for future borrowing if they can show them that their debts mostly consisted of medical bills.

If you are attempting to obtain a loan after filing bankruptcy, it can help to show the lender a copy of your bankruptcy schedules to prove that your debts were predominately medical bills and not consumer borrowing. Read more…