Obamacare, Medical Bills & Bankruptcy

The news coverage on the U.S. Supreme Court’s decision on Obamacare had all the flare of the Superbowl.  This decision will no doubt be hashed out both in public and private for sometime to come.  And whether you are for Obamacare or not, most would likely say that there are at least some problems when it comes to healthcare and how we pay for it.

Medical treatment and and the ever rising costs are a big deal.  I would guess that about 30-50% of the bankruptcy cases I file have a large amount of medical debt.  And by large I mean $25,000 or more.  And sometimes it is not so much the total amount of medical debt that drives someone into bankruptcy, it is the way the medical providers send you the bill.

If you have ever had a serious medical procedure you know what I am talking about.  When you spend time in the hospital you are seen by all kinds of people.  Doctors, nurses, specialists, lab people, etc.  And each of them want to get paid.  But you don’t get just one big bill at the end of the month – you get a couple dozen (or more) little bills.  You end up with bankruptcy by a thousand bills.

So many people tell me that they could pay their medical bills if they could just consolidate them.  If they had one payment per month.  But that is not how it works.  Each medical provider sends a separate invoice and expects to get paid.  So, instead of one $500 monthly payment, you get ten $150 invoices, and you simply don’t have the cash flow to make it work.

Eliminate Your Medical Bills through Bankruptcy

So what can you do if you are in this situation?  For many bankruptcy is the one option that will finally take care of all the outstanding medical bills.  Bankruptcy will completely eliminate unsecured debts like medical debt.  Also, once a bankruptcy case is filed the bankruptcy court will issue an order that stops all collection efforts against you.  This means no collection calls, no snotty letters, no lawsuits, no nothing.  Everything must stop.

Regardless of where the national debate on health care ends up, you have the option of bankruptcy in your back pocket to help you out if things become unmanageable.