• 01
  • July
    2011

Among the many circumstances that can lead a family to the brink of financial ruin, long illnesses or severe injuries are all too common. Medical bills and lost income quickly bury many Americas with overwhelming debt. Chapter 7 and Chapter 13 bankruptcies can provide immediate solutions and set families back on the road to long-term financial health.

Unbearable medical debt is not just a risk to the many Americans without health insurance. David Himmelstein, a national expert on public health policy, cautions against cutting insurance benefits to balance budgets. Himmelstein, who is also an associate professor at the Harvard School of Medicine, has studied health-related bankruptcies for over ten years and found that medical bankruptcies were on the rise well before the recent economic downturn.

According to Himmelstein's published report in the American Journal of Medicine, three quarters people who filed for medical bankruptcies actually had health insurance. They became buried in debt due to inadequate coverage which buried them with high insurance premiums, high deductibles and extensive copay requirements.

A second report in the American Journal of Medicine, published this year reviewed the incidence of medical bankruptcies in Massachusetts since its health reform legislation had been enacted. Himmelstein found no decrease in medical bankruptcies even after the state had cut the rate of its rate of uninsured residents in half. The state boasted only a slightly lower rate of medical bankruptcies than the rest of the United States in 2007.

The decision to file for bankruptcy is made with good reason. Bankruptcy can help an unmarried individual or couple either eliminate debts or arrange for a fair and convenient repayment schedule over a period of three to five years.

Realizing that there is hope to escape a mountain of bills that arose following an urgent problem can be a tremendous relief for many. A Tennessee bankruptcy lawyer can offer a range of insights about strategies to put a bad period in the past.

Source: http://www.murfreesboropost.com/research-medical-bills-leading-cause-of-bankruptcy-cms-26585