As an attorney I help many people through bankruptcy and there are often many reasons why someone may need to file for chapter 7 bankruptcy protection. Interestingly enough, the results of research conducted over the past decade has shown that medical bills are a leading cause of financial problems that can ultimately lead to bankruptcy.
Recent data shows that bankruptcies went up substantially between 2002 and 2007, this was even before the most recent Recession hit - and that the vast majority of those people had some level of insurance. Most people who are driven into bankruptcy by illness and medical bills often do have coverage, but it's such inadequate coverage that it doesn't keep them from financial ruin. They're facing huge premiums and copayments and deductibles - and things that aren't covered by their insurance.
Lawmakers in many states are grappling with budget deficits, this recent research suggests that cuts to medical coverage as a budget-balancing tool can be false economy because the consequences of such a cut may be even more costly. Like a recently proposed bill to move public-sector employees to a high-deductible health plan and make them responsible for 100 percent of the plan's premium. For workers with families who have just one medical condition, the estimated out-of-pocket expenses would top $20,000. Saying you're going to shift a large bill onto public employees is tantamount to saying that you're going to bring financial ruin to a substantial number of those people.
There are many people with really inadequate coverage. Trading uninsurance for underinsurance doesn't work. When people are seriously ill, they can end up with such huge medical bills that they really don't have enough coverage to keep them out of the bankruptcy court.
No matter what the reason is for your financial difficulties, please don't hesitate to contact an attorney to get the right advice about bankruptcy and find out if it might be right for you. If you have questions about filing for bankruptcy I offer a free 30 minute telephone bankruptcy consultation where we can discuss your debt situation and work out a plan of action.