Most people know that just one bill can create a significant financial setback. In fact, receiving one large emergency room bill or a set of hospital bills after a diagnosis of a medical condition can lead to filing for bankruptcy. But Is Medical Bankruptcy Really That Common? Although new research shows there may be more frequent reasons for bankruptcy than medical expenses, historically, medical reasons were a leading factor in filing.
There is no doubt that medical bills can push patients over a very difficult financial cliff. However, research published in the New England Journal of Medicine indicates that hospitalization contributes to approximately 4% of personal bankruptcies. This study analyzed the credit reports of more than 500,000 adults under age 65 in California who were hospitalized between 2003 and 2007 for reasons other than childbirth.
A major surgery or a series of medical bills can set you back significantly. If you can’t keep on top of the bills, you may face the prospect of bankruptcy. But Is Medical Bankruptcy Really That Common? Although some patients were forced into bankruptcy following hospitalization, it happened less frequently than other studies suggested. This larger-scale analysis included a broader population than previous research, which focused only on those who had already filed for bankruptcy protection.
Despite what the study says, a significant medical bill can leave you unable to work and disrupt your family’s life if you cannot recover financially. Consult with an experienced bankruptcy lawyer today to learn how to protect yourself.
Any bankruptcy lawyer can guide you on when to file and how to benefit from the protections provided by filing your bankruptcy petition. Understanding Is Medical Bankruptcy Really That Common can help you make informed decisions about your financial options.