Bankruptcy and Medical Bills

Bankruptcy can be a tough time in someone’s life but it can be brought on by a variety of different problems. Of course, many people think of bankruptcy as an avoidable financial state, but sometimes there is really no way out. The common perception of bankruptcy is that it’s caused largely by financial abuse or misuse and was the fault of the debtor in the first place. While this can occasionally be true, it certainly isn’t always true. Indeed, many debtors find themselves at the mercy of accumulating bills that never seem to end. You might also think that these bills are avoidable, but that might also be a misconception.

Medical bills can drive many Americans into bankruptcy because they can just keep accumulating and accumulating. If you’ve got chronic health issues, but don’t have health insurance, life can be an exercise in “just getting by.” After a while, however, bill collectors will start showing up and “just getting by” is no longer cutting it. If you find yourself in this sad state of affairs, you can wonder, “Does bankruptcy cover medical bills?” Many people might be dogging you for money that you don’t (or will never) have. This can certainly be frustrating and defeating, but might bankruptcy be your way out?

It can be, but you have to sort of “play the system” if you want to come out on top. Your eligibility for bankruptcy varies by state and can have a lot to do with the size of your household and annual income. You also need to ensure that you pick the right time to file. This is largely because federal law will look at the last six months for any of your taxed income. If you’ve made quite a bit of money within the last six months but have also racked up a ton in medical expenses, your claim will still be denied. If your physical condition has caused you to quit your job, simply wait at least six months before filing a bankruptcy petition. Of course, this can make you feel even worse because all you’ll see is growing debt, but it might be your only option to get out from under those wretched medical bills.