Medical debt is often dischargeable in bankruptcy.
Medical advances have resulted in a number of treatment options that can help patients manage cancer. These treatments can include surgery, chemotherapy and radiation among others. Regardless of the chosen method, one thing is true about most forms of treatment: they are expensive. Even with insurance coverage a patient can be left with large medical bills. These bills can be difficult to manage and, according to a recent study, can result in bankruptcy.
Fox News Health discussed the study, noting cancer therapy can cost a patient from $10,000 to $60,000 every month. The study is available through the National Library of Medicine, titled For Working-Age Cancer Survivors, Medical Debt and Bankruptcy Create Financial Hardships . According to researchers, one-third of the 4,719 reviewed cancer survivors, ranging in age from 18 to 64, went into debt as a result of the cost of their cancer treatment. 55 percent of these survivors reported owing at least $10,000.
Dealing with medical debt: Bankruptcy as an option
For those struggling with medical debt, bankruptcy may be an option for a fresh financial start. Two of the common forms of bankruptcy used by individuals are Chapter 7 and Chapter 13. Regardless of the chapter chosen, once a petition for relief through bankruptcy is approved the court issues an automatic stay. This court order requires creditors to cease in their attempts to receive payment. This includes wage garnishments, lawsuits, calls and other forms of contact by creditors.
Considering bankruptcy: These chapters provide relief
Those who are considering bankruptcy can benefit from a basic understanding of these two chapters:
Determining whether or not bankruptcy is the right option for you can be difficult. As a result, it is wise to seek the counsel of an experienced bankruptcy lawyer.