DiTocco Law Group, PLLC
Broward County
954-566-9000
Palm Beach County
561-487-0200
Miami-Dade County
305-444-8660

Medical debt is a common reason to consider bankruptcy

For many years, bankruptcy was one of those subjects that most people simply did not want to think about, much less talk about openly. Fortunately, that is changing, and this change couldn't come a moment too soon. As public opinion about bankruptcy changes, more people recognize that living in the modern world is always a dangerous proposition, and bankruptcy is one of the great gifts that the law gives us when unexpected setbacks occur.

These days, one of the most common reasons to consider bankruptcy is overwhelming medical debt. It is no longer a controversial opinion that the cost of medical care in America is astronomical. Many of us live in fear that that, no matter how well things are going at any moment, an unexpected illness or serious accident can bury us in debt in an instant. Many people even avoid treatment that they desperately need because they don't know how they'll ever pay for it.

If you find yourself under medical debt that you cannot pay, it may be time to consider the relief that bankruptcy can offer. Once we look past needless stigma, which is thankfully fading away, it is easier to see just how life-changing a fresh financial start is.

Bankruptcy and debt discharge

It is important to understand that filing for bankruptcy does not "magically" make debt disappear, medical or otherwise. Under Chapter 7, a person may receive a significant discharge of their debt, but must typically sacrifice some portion of their personal property and accept strict boundaries around borrowing money for a period of time.

Under Chapter 13, a person with sufficient income may work out a structured repayment plan that a court approves, repaying their debt to several parties over a set period of time. Chapter 13 does not necessarily require sacrificing property, but does include similar restrictions against borrowing, in many cases.

Depending on your circumstances and the nature of your debt, you may qualify for one or both of these procedures. For those who owe a great deal in medical debt, this trade off is incredibly one-sided in their favor if used properly. A recent survey of Americans filing bankruptcy found that one out of every five undergo bankruptcy because of medical debt.

It is true that bankruptcy is often a difficult process, but in the long run it is often much better than avoiding filing.

Consider this — is any part of the bankruptcy process more costly or more likely to harm you than continuing to struggle under debt that you cannot pay? Medical debt can easily grow into hundreds of thousands of dollars for care that a person needs to continue living or resolve pain that makes every part of their lives difficult. Also, it may arise whether a person makes any other financial "mistakes" or not. For many suffering in this way, bankruptcy offers a fresh start when they most need one.

Protect your rights and recovery

If you are drowning in medical debt, refusing to consider bankruptcy is at least unwise and potentially very destructive. Those struggling to pay for the care they need are under immense amounts of stress, and that stress itself can lead to other larger medical issues.

A well-planned bankruptcy uses the strength of the law in Florida to offer those who fall on hard times an opportunity to start fresh and keep their rights and priorities protected while they recover, physically and financially.

No Comments

Leave a comment
Comment Information

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

email us for a response

Main Office

6750 North Andrews Avenue
Suite 200
Ft. Lauderdale, FL 33309

Phone: 954-566-9000
Fort Lauderdale Law Office Map & Info

3350 SW 148th Avenue
Suite 110
Miramar, FL 33027

Phone: 954-566-9000
Miramar, FL Office Map & Info

777 South Flagler Drive
Philips Point
Suite 800 - West Tower
West Palm Beach, FL 33401

Phone: 561-487-0200
West Palm Beach, FL Office Map & Info

20801 Biscayne Boulevard
Suite 403
Aventura, FL 33180

Phone: 305-444-8660
Aventura, FL Office Map & Info

8201 Peters Road
Suite 1000
Plantation, FL 33324

Phone: 954-566-9000
Plantation, FL Office Map & Info

2255 Glades Road
Suite 324A
Boca Raton, FL 33431

Phone: 561-487-0200
Boca Raton, FL Office Map & Info

Broward County 954-566-9000
Palm Beach County 561-487-0200
Miami-Dade County 305-444-8660