The soaring cost of health care along with declining coverage and increases in excluded services and treatment has made unpaid health care expenses a leading cause of bankruptcy. Unpaid health care expenses are responsible for over half of all U.S. bankruptcy filings. Medical bankruptcy can be understood as a legal protection availed against debts arising out of medical treatment, hospitalization expenditures, medication costs, and nursing as well as physiotherapy charges. A hospital stay without medical insurance can easily cost tens of thousands of dollars. Even with insurance, uncovered treatment for serious medical conditions like certain cancer treatments can easily reach into the hundreds of thousands. At the Shakoori Law Group, we can help your family overcome the financial crippling impact of unanticipated extraordinary medical expenses.
Extraordinary medical expenses can be among the financial debts that are easiest to discharge in bankruptcy. One study found that three-quarters of the bankruptcies filed relating to medical bills involved debtors with health insurance coverage. The reasons for the bankruptcy filings included the high cost of medical insurance, laws allowing insurance companies to prevent sick people from obtaining benefits and the inability of seriously ill individuals to continue with their health insurance while at work. The skyrocketing cost of health insurance has made it so that many, who do not have access to health insurance through employment cannot afford insurance. Medical expenses that are not covered under their health plan can devastate even those with coverage.
A Chapter 7 bankruptcy permits a debtor to obtain a discharge of unsecured debt. Typically, medical related expenses would be in the form of unsecured debt including the following:
- Unpaid medical bills
- Credit card bills to pay for medical expenses
- Loans obtained to pay medical bills
- Outstanding health insurance premiums
Generally, these obligations can be discharged in a Chapter 7 bankruptcy so that your family can obtain relief from medical expenses and health care costs that are often massive and unanticipated. A qualified Southern California bankruptcy attorney at the Shakoori Law Group can help you determine if you are eligible to have all of your unpaid medical expenses discharged in a Chapter 7 bankruptcy. Even if you do not qualify for a Chapter 7 bankruptcy, we can help you obtain a partial discharge of your unpaid medical expenses and health care related debt and have the balance paid in manageable monthly payments through a Chapter 13 bankruptcy.
The Shakoori Law Office is conveniently located in Santa Ana, California and assists clients throughout Southern California including but not limited to the following: Santa Ana, Tustin, Fullerton, Orange, Anaheim, Irvine, Newport Beach, Costa Mesa, Fountain Valley, Huntington Beach, Westminster, Garden Grove, Orange, Buena Park, Placentia, Yorba Linda, Irvine and throughout Los Angeles, Riverside and San Bernardino Counties. Call today for your no obligation free initial consultation 800-578-0922.