How does medical bankruptcy work in the United States?
Medical bankruptcy
It's a scary phrase, especially if you've ever had to file for bankruptcy before. It's even scarier if you're close to someone who's been through it. But what exactly is it? How does the process of medical bankruptcy work in the United States? Let's look into it, starting with the basics.
According to the American Journal of Medicine, in the U.S., more than one hundred thousand people are responsible for over one billion dollars in unpaid medical bills each year. The World Health Organization has ranked the U.S. healthcare system as thirty-first in the world, and on average, Americans spend twice as much of their GDP on healthcare costs as other developed nations. The high cost of health care in the U.S. has brought about a growing number of medical bankruptcies each year.
Definition
A quick definition: you file for bankruptcy when you cannot pay off your debts. If you can't pay off your debt, you could file for bankruptcy to get a fresh start, but there are two kinds of bankruptcy—medical and non-medical—and you should know how they work.
How medical bankruptcy happens
Medical bankruptcy happens when your medical expenses are so high that they outweigh all other debts that you have and continue to grow while your income stops increasing enough to cover them. You will likely have no choice but to declare yourself bankrupt because even with insurance, your bills will be so high that it won't make a difference.
Medical bankruptcy happens most often when a person is uninsured or underinsured and has large hospital bills for an extended period of time.
If you have any questions, you can get a free consultation with the Best Attorneys in Utah.
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
