Medical Care and Bankruptcy

April 10, 2014
>> Bankruptcy, Creditors, Debt, Preference Payments

Hopefully with millions of Americans now covered by health insurance, medical bankruptcies will decline. Not a moment too soon, but health care costs are still rising and high medical bills will still put people into deep, unmanageable debt. A problem that often arises, though, is that bankruptcy doesn’t discharge people’s medical problems, so they still need medical care. So what happens to people who need health care and are having debt problems? A few things.

One, no matter how much you like your doctor or health providers, do not omit your medical debts from your bankruptcy petition. Don’t make any preference payments to your doctor before bankruptcy either. On the bright side medical debts are unsecured, so they should be easily dischargeable in a chapter 7 bankruptcy.

Two, during and after your bankruptcy, your doctor should still treat you. Just expect to pay up front if you’re not receiving emergency services. If you do have an emergency, medical professionals are legally and professionally bound to treat you without exception, and this includes past non-payments.

Three, if you do value your relationship with your doctor, you are free to repay your debt after bankruptcy. You’re also free to file a chapter 13 bankruptcy even if you could file chapter 7. Either option might prevent any discord in your relationship. However, that relationship should be business first. Your doctor should realize that you didn’t file bankruptcy to spite him or her and that it’s not evidence of a personal failing. Otherwise, your doctor isn’t very professional.

Medical debt might decline in the future, but due to high costs and imperfections in the health care system, it will probably still lead to bankruptcies. If you are having trouble paying a medical debt, and you also might need long-term treatment, talking to an experienced New York bankruptcy lawyer can help you explore your options.

For answers to more questions about medical bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced bankruptcy attorney Brooklyn NY Bruce Weiner for a free initial consultation.

Bankruptcy, Bankruptcy Myths, Preference Payments

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

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