Medical Bankruptcy

Medical costs in the United States have continued to climb while the number of Americans who have medical coverage has continued to drop each year. A high percentage of Americans remain uninsured and with the continued high costs of medical care and treatment the potential to incur significant medical expenses from an unexpected life event is a real risk that looms over many American families.

Many Americans have had to file for medical bankruptcy because they have experienced an unexpected medical problem while they were uninsured. A medical bankruptcy is the filing of a bankruptcy case mainly to relieve personal debt that has accumulated from medical treatments, hospitalization, or overall medical care.

Filing for bankruptcy allows individuals to discharge their personal liability from medical bills that have accumulated prior to filing for bankruptcy. Chapter 7 and Chapter 13 bankruptcy offers individuals the opportunity to discharge medical bills from:

Outpatient Hospital Bills-tests, medical procedures or surgery done at outpatient facilities

Home Care Treatment-medical bills from in home health care including home medical care provided from a nurse aide, physical therapist or from bills associated with supplies or medical equipment needs for in home care.

Hospital Bills-bills for your hospital room, food, and any medical care or procedures that where conducted while you were receiving in-hospital treatment.

Doctors Bills-any medical treatments performed by a doctor for which you were billed. Physician's bills include any specialized treatment or charges from doctors such as emergency room doctors or anesthesiologist.

Dentist Bills - any dental bills from treatments by a dentist including oral hygienist or orthodontist treatments.

Will I Be Denied Medical Treatment if I file for Bankruptcy?

You may be concerned about filing for bankruptcy because you fear being denied medical treatment. You may have an ongoing need for medical treatment because of an existing condition or there is always the potential that a medical emergency may arise.

Generally most medical providers will not deny you medical service on the basis that you have included their bill in a bankruptcy. It is only the small medical providers who may require some form of deposit in order to provide you medical services.

If there is an ongoing need for medical treatment and you are concerned about keeping your current medical provider then you can consider a payment arrangement. After your bankruptcy case is discharged, you can arrange for some form of payment to this doctor or health care provider. Although you are required to list all medical bills as part of your bankruptcy, there is nothing in the law that prohibits you from setting up a payment arrangement for any medical bill that was discharged in bankruptcy.

In addition, if you have ongoing medical expenses that will result in significant costs then you should consider possibly waiting to file bankruptcy to ensure that these medical costs are included as part of your bankruptcy.

For further information about bankruptcy you can go to: Los Angeles Bankruptcy or Chapter 13 Bankruptcy