Had anyone heard of the term medical bankruptcy before? Well, people might think that it has something to do with being insolvent because of medical issues alone, and filing a ‘medical bankruptcy’ because of it.
No one can blame you for thinking that way because I also had the same first thought. It’s a help for everybody; therefore, it’s a must that you have at least the basic understanding about it. To help you be informed about this topic, here is some of the basic information about the term.
What is Medical Bankruptcy
Medical Bankruptcy is a general term used in referring to the reason why people need to file a bankruptcy. In reality, this is not a legal term. According to its rules, if you are to file a medical bankruptcy, you need to either file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. In this filing, you need to include all your debts that have to do with all your medical debts and other unsecured loans.
Following some examination and it is proven that you are can not actually pay, they will zero all the debts and is going to be declared into Bankruptcy. When you file for a certain bankruptcy, you are required in listing down all of your creditors, which include your medical bills. This only clears up that ‘medical bankruptcy’ is that it is not all about your medical debts.
Based on the statistics, supplied by an article in CNN, medical debts are one of the basic reasons why people get forced to file Bankruptcy. As a matter of fact, about 60% of the filed Bankruptcy is because of medical issues. Almost all of this 60% is the single mothers and elderly.
Having health care insurance does not mean insurance at all. According to some medical bankruptcy statistics, about 80% of the bankruptcy filers have insurance. This may be because of the fact that even people have health insurance, they still need to endure most of the payments for the bills that force them in filing for Bankruptcy.
Some of The people believe that filing bankruptcy will mean that doctors can refuse in treating you. Well, according to federal law, those hospitals that receive a subsidy from the government do not have the right to refuse from accepting a patient who had filed a bankruptcy.
More often than not, the doctor and the patient makes agreement on the amount that the patient can afford to pay the doctor even he had suffered from Bankruptcy.
MedicalBankruptcy is available for all those needs and seeks financial help. However, it should always bethe last resort. This should not be considered as a simple way for all to escape from their creditors and debts. It must be filed if you actually do not have an option and there is no way that you can answer for your obligations.
No one can deny the fact that only a few people knew about this fact. In consequence, this is the right of all individuals; therefore, everyone should have knowledge about it. In all cases of life situation,
being well informed is one of the basic keys to give solutions to the problem you thought will never be solved forever.