What You Need to Know about Filing a Medical Bankruptcy

Having health insurance doesn't always protect you against the likelihood of having to file a medical bankruptcy. With large deductibles and high out-of-pocket limits, your financial responsibility for medical expenses often soars until this cost becomes unmanageable.

Loosely defined, a medical bankruptcy occurs when an individual files a petition with the court to wipe away medical bills along with other accumulated debts. Undergoing this type of legal action allows people to reclaim their ability to live their lives without worrying over excessively large bills.

Hiring a reputable attorney before you file for medical bankruptcy is important. It's not one of those steps you should hesitate about doing. Without legal guidance, you may not achieve a good outcome for your situation.

A single medical emergency can send you down the path of financial ruin. It isn't enough to have health insurance to protect you against the cost of medical bills. The inability to continue working while recovering worsens the problem. You won't have a reliable source of income to help pay your bills. Even if you can apply for medical disability insurance, you won't receive your payments until you go back to work. By that time, your bills are out of control.

Why Hire a Medical Bankruptcy Attorney?

It isn't easy to navigate all of the rules and steps you must follow to manage a legal case successfully. Hiring an experienced bankruptcy attorney can help you in each of the following ways:

• Obtain legal guidance on what you should do

• Have someone to present your case in court

• Allow someone else to do the worrying for you

• Regain the ability to focus on your physical and mental health

What Documents Does the Bankruptcy Court Require?

Petitioners filing for a medical bankruptcy must follow a specific set of guidelines to move forward with a legal case. Here is a list of the items you'll need to provide when filing a medical bankruptcy claim:

• Petition for medical bankruptcy

• List of creditors and amount of money owed to each one

• List of assets owned by the petitioner (debtor), including real estate and vehicles

• List of petitioner's monthly expenses, including mortgage or rent, clothing, household goods, transportation, food, and medical bills

Why Are So Many People Petitioning for Medical Bankruptcies?

The financial costs of a medical emergency are typically much larger than most individuals have resources to pay. The typical person simply does not have enough money put away to help cover the expenses associated with this type of situation. From the cost of the ambulance to surgeon services to hospitalizations, the bills accumulate until they run into hundreds of thousands of dollars.

People aren't lazy of forgetful when it comes to getting health insurance. They simply don't have access to a good plan for one or more of the following reasons:

• Employer only offers high deductible plans.

• The monthly cost of health insurance is too high.

• Some people believe they are too healthy to need it.

You'll want the best chance of filing your bankruptcy claim successfully, particularly if you have enormous medical bills. Hiring an experienced bankruptcy attorney is one of the best ways to promote a successful conclusion for your petition. If you find yourself needing relief from medical debts, speak with an experienced bankruptcy attorney at your earliest convenience.