I’ve met with hundreds of clients over the 20 plus years that I’ve been a bankruptcy lawyer. And, many times, people ask me to do a “Medical Bankruptcy”. There is really no such thing as a “Medical Bankruptcy”. The term is just a way to explain why you had to file for bankruptcy. And, that could help you get credit after filing a bankruptcy case.
There are many bankruptcies caused primarily by high medical bills. Both Chapter 7 and Chapter 13 bankruptcies can be “Medical Bankruptcies”.
More and more, people aren’t able to pay for their medical bills. People without insurance cannot pay for their bills, and have huge medical bills from going to the doctor or emergency room. Even people with insurance under “ObamaCare” still have those co-payments and deductibles to pay. And, many insurance policies have high deductibles, meaning that the insurance doesn’t kick in until a person or family has to pay thousands of dollars.
Most people I see don’t want to file bankruptcy. They are stressed out by all of their bills, trying to make the mortgage payment or rent payment, and they just cannot do it. And, a big factor can be medical bills.
If you go to get credit for a car or house after bankruptcy, and medical bills are a big factor in your bankruptcy, you can tell the lender you had a “Medical Bankruptcy”. That’s just a way to explain what happened, and will explain that medical bills, and not overspending was the reason for your bankruptcy.
If you were overwhelmed with medical bills, and just struggling to get by, call us. We can help. We have offices in Chicago, Gurnee, Oak Lawn, and Skokie in Illinois.
Daniel J. Winter