Medical Bills and Bankruptcy The Real Story

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Filing for bankruptcy can be a tedious and stressful process, and there’s no denying that it’s one of the most difficult types of lawsuits people face today. Believe it or not, the most common cause of personal bankruptcy claims isn’t poor money management; it’s actually a result of sky-high medical bills.
It’s estimated that around one million people file for bankruptcy every year, 97% of those bankruptcy cases are personal claims, and around 62% of all personal bankruptcy claims are connected to medical bills. Many bankruptcy claimants even have health insurance policies and they have several lines of credit open to cover the costs of their healthcare, and this debt only grows over time.
Unfortunately, these medical bills are often connected to other legal problems, suggesting that personal injury lawsuits don’t always benefit the victim as much as they should. The average personal injury lawsuit only pays out $60,000 in compensation, which definitely isn’t enough to cover the costs of medical treatment, lost wages, and the emotional effects of being injured; even more so if the injury is severe or even permanent. It’s common for victims to underestimate the amount of financial compensation they deserve in a personal injury case, especially if they’re representing themselves without the help of a lawyer, because they aren’t necessarily considering the long-term costs of medical care.
Luckily, it’s possible to get back on track after you declare bankruptcy. A dedicated bankruptcy attorney will help you decide whether or not filing for bankruptcy is the best option, and if it is, you’ll also receive help determining whether to file under Chapter 7 or Chapter 13.
The consequences of filing for bankruptcy certainly shouldn’t be ignored, but if you are considering a bankruptcy lawsuit as a solution to your financial woes, rest assured that you certainly aren’t alone.