Tavere

Free Case Evaluation

510-255-4646
  • Home
  • About Firm
  • Practice Areas
  • Testimonials
  • Attorney
  • Blog
    • Articles
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
    • General Bankruptcy
    • Bankruptcy Law
    • Bankruptcy News
    • Types of Debt in Bankruptcy
  • Contact Us
Stop Worrying About Your Debt

A Better Tomorrow

Starting Today

Stop Worrying About your Debt.
Call us Now to Take the First Step.

Click Here
Affordable Payment Plans

Free Consultations

Affordable Fees

Affordable Payment Plans.
Free 1 Hour Consultations.

Click Here

Get Back

On Track

Wipe out your Debt and Pave The
way to a Better Financial Future

Click Here
Millions in debt discharged for our clients

Real concern

Real help

Millions in debt Discharged
For our Clients. Call Today, let us Help!

Click Here

Medical Bankruptcy

Admin on July 5, 2017 Posted in Bankruptcy Law, Blog

Consumers face debt for numerous reasons. Debt can be due to loss of income, decrease in income, disaster, unchecked spending, and more. A significant source of debt is due to medical bills, often caused by weak or no insurance coverage. Some individuals with serious and exploratory conditions may seek alternative treatment that is not covered by insurance. People may be compelled to undergo untested and non-traditional medical procedures due to the lack of success from traditional procedures. Under these circumstances, people have no choice but to assume a repayment obligation without prospects for repayment. This leads to large debt, with bankruptcy the only option for relief. This is known as medical bankruptcy.

Medical Bankruptcy Metrics

In 2013, Nerdwallet Health compiled statistics that display the seriousness of medical bankruptcies. It estimated that households containing 1.7 million people will be affected by medical bankruptcies every year. The causes are high medical bills due to lack of insurance, high-deductible insurance, and procedures not covered by insurance. Because healthcare costs are astronomical, corresponding debt is large and can accumulate quickly.

A 2009 study by Himmelstein et al stated that 62% of all consumer bankruptcies were medical bankruptcies. The study pointed to out-of-pocket expenses for various ailments as the cause. Specifically, multiple sclerosis, injuries, stroke, mental illness, and heart disease were the leading cause of debt-induced consumer bankruptcy.

However, Northwestern’s Kellog School of Management conducted a survey of medical bankruptcies and found that 17% of bankruptcies were medically-related. This number significantly conflicts with the Himmelstein study.

While the exact percentage is unclear, it is clear that those people who are uninsured, underinsured, hold high-deductible insurance, or are undergoing an uninsured procedure will often face crushing debt due to high medical bills.

The Affordable Care Act

Among other topics, medical bankruptcies were a discussion point in the buildup to passing the Affordable Care Act, or Obamacare. Those in favor of Obamacare showed statistics of medical bankruptcies and put forward universal health care as a solution. Universal health care, in the form of Obamacare, would place the person requiring medical treatment in the healthcare system. Under the system, a person would receive medical treatment without bills and deductibles so there would be no concern of medical care-induced debt, proponents of the Act argued. In turn, bankruptcies would fall by as much as 62% (presuming the numbers are accurate).

Others countered that this argument is specious. Based on a parallel with other countries offering universal health care, the people requiring the most care would not receive such care from a licensed doctor. The administrator of the health care plan can decide that such procedures are too expensive. As a result, the patient seeking treatment would feel compelled to look at secondary options in other countries, which likely would not accept any insurance. This would make medical bills higher and treatment of inferior quality. In turn, bankruptcies would increase due to medical care.

Someone dealing with medical concerns is likely going through a difficult time. Paying those bills may be an additional burden. If you are facing medical debt, contact the debt relief firm of Melanie Tavare.

Recent Posts

  • Sears Files Chapter 11

    Corporate bankruptcies are somewhat misunderstood. While Chapter 11 bankruptcy is called a reorganization, the idea that a business will em

    category : Bankruptcy Law, Blog

  • Wasting Assets

    When a business faces bankruptcy, questions arise regarding how to handle wasting assets. In general, a business may operate per its regula

    category : Bankruptcy Law, Blog

  • Chapter 11 Negotiation

    Chapter 11 bankruptcy is a negotiation. As a result, it is imperative to consider strategies that keep your business alive during and after

    category : Bankruptcy Law, Blog

  • DIP Financing

    The United States Bankruptcy Code, or the Code, provides a variety of chapters wherein a distressed debtor can file. Debtors are afforded a

    category : Bankruptcy Law, Blog

search this year

  • January 2019
  • December 2018
  • Search by Year

  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • img

    Quick Links

    • Home
    • About Firm
    • Practice Areas
    • Attorney
    • Communities Served
    • FAQ
    • Disclaimer
    • Contact Us

    Follow Us

    • Facebook
    • Twitter
    • Google
    • Yelp

    Contact Us

    • Oakland Office

      1300 Clay St. Suite 600
      Oakland, CA 94612

    • Hayward Office

      225 W Winton Ave,
      Ste 111
      Hayward, CA 94544

    • 510 255 4646

    We serve the following localities: Alameda County, Alameda, Berkeley, Castro Valley, Fremont, Hayward, Livermore, Oakland, San Leandro, Union City, Contra Costa County, Antioch, Brentwood, Concord, Martinez, Pittsburg, Richmond, Walnut Creek, San Francisco County, San Francisco, Albany, Ashland, Dublin, Emeryville, Newark, Pleasanton, San Lorenzo, and Alamo.


    The Law Offices of Melanie Tavare is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code


    |

    2018 © Copyright law office of Melanie Tavare