I want to file a “medical bankruptcy”

We get calls asking for a “medical bankruptcy” nearly every day.

There is no such thing.

Medical bills are similar to credit cards — unsecured debt

When you file for bankruptcy protection, your medical creditors are in your filing alongside all the others, including credit cards, vehicles, real estate, business loans you guaranteed, etc.

That said, medical bills are often a factor in the decision to file for bankruptcy protection.

Harvard Medical & Law Schools’ joint findings

• The average out-of-pocket medical debt for those who filed for bankruptcy was $12,000.
• 68 % of those who filed for bankruptcy had health insurance. 50% of all bankruptcy filings were partly the result of medical expenses.
• Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem.
• More than 90% of medically related bankruptcies were caused by high medical bills directly or medical costs that were so high the family was forced to mortgage their home. The remaining 8% went bankrupt because a medical problem caused them to lose income.
• A 2007 study found that, of low- and middle-income households with credit-card debt, 29% used their plastic to pay off medical expenses

If you have unmanageable debts, call us before you liquidate your savings

Indeed, call us before you refinance your home, liquidate your 401-k or take any measures to pay unsecured debt.  That includes credit cards and medical bills.

You need legal guidance to make financial decisions during an emotionally distressed time in your life.   If you rely on creditors for legal advice you will be ill-informed.  And offers of “free credit counseling” are often a fraudulent way to lure you into more debt.

Call our office for an initial appointment.  You’ll get the benefit of our 40+ years of legal experience and you’ll deal with either Mitchell or Culp, no rookie lawyer learning the ropes.

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