Bankruptcy and Medical Bills

A study done by Harvard Law shows that over 60% of bankruptcies filed occurred because of rising medical costs.

“Nationally, a quarter of firms cancel coverage immediately when an employee suffers a disabling illness; another quarter do so within a year,” the report reads.  This is not good news to hard workers who think they are covered in case of calamatious medical events in their family! 

Certain types of medical conditions really made the medical bills skyrocket.  Some common examples of high cost health issues were “patients with MS who paid a mean of $34,167 out of pocket in 2007, diabetics paid $26,971, and those with injuries paid $25,096, the researchers found.”

 Now you may be healthy, and we hope you are, but bankruptcy is caused by medical bills more often than you might think.  So, what can you do?

1) Make sure you have some good medical insurance, it may not last forever, but can get you through a year or two.

2) Stay current on your house payment.  Homes are one of the assets that can often be protected, even through a bankruptcy.

3) Save for a rainy day.  Sooner or later, we’ll all have some expensive medical bills, try and be prepared for this.

If it turns out the medical bills have gotten so high that you’ll never dig your way out, speaking to a bankruptcy attorney in Denver is a sensible option to pursue.  The first consultation is free!