Medical Bills and Bankruptcy
San Francisco bankruptcy attorney Mark Chernev discusses bankruptcy and medical bills.
A catastrophic injury can quickly become an overwhelming financial crisis. Even with health insurance,
a majority of Americans cannot afford to pay the ever-rising costs of healthcare.
According to a June 2009 study by U.S. researchers, more than 60% of personal bankruptcies in the United States are caused by crippling medical debt. Reuters recently reported that the majority of those filers are well-educated, middle-class individuals who have health insurance coverage.
"Unless you're Warren Buffett, your family is just one serious illness away from bankruptcy," said Harvard’s Dr. David Himmelstein.
If you are one of the many people struggling under the weight of unpaid medical debt, you do have options.
Bankruptcy protections are meant to give you a fresh start by providing you with the tools you need you to rebuild your life after a financial crisis. While there is no such thing as a "medical bankruptcy," you may be able to discharge your unpaid medical bills by filing for bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code.
