Medical Bills Often Lead To Bankruptcy States Oak Brook Bankruptcy A...

Another scenario where chapter 7 bankruptcy is important is in the area of medical bills.  Very often, people have either no insurance or they have limited medical insurance that does not cover whatever medical procedure or condition they have.  Obviously, if a person does not have medical insurance, any kind of hospitalization or any kind of major medical condition is going to cause the inability to pay the debt.  This will lead to a chapter 7 bankruptcy, which will eliminate the medical debt.

Even people who have medical insurance often have to file chapter 7 bankruptcy because of the portion that is not paid for by insurance.  Depending on the complexity of the medical condition and the ability of the insurance company to cover it, there is going to be a certain amount that is due and owing from the individual. 

If the insurance doesn’t cover it or if the medical procedure or condition is significant, there may be a very high amount that is owed that insurance just could not cover.  In that situation, a person can file a chapter 7 bankruptcy and eliminate the medical bills.  There are usually a series of medical bills between the hospital, the doctors, x-rays, and other providers.  It’s not just one bill that they can actually call the provider and try to work out a payment plan.  There are usually a series of doctors and a series of other service providers who are owed money.

So, medical bills are typically the second leading cause of a person filing a chapter 7 bankruptcy. 

For additional information regading filing for bankruptcy due to medical bills, contact David Siegel at (847) 520-8100 or visit Oak Brook Bankruptcy Attorney.