Medical Bills and Bankruptcy

1. Are medical bills dischargeable in a bankruptcy?

Medical bills caused after a temporary illness, or medical debt that has skyrocketed because of a chronic medical problem(s) can force many New Jersey-ites to the brink of financial ruin. Many New Jersey-ites find themselves in massive debt because of a serious illness or from chronic health problems. If you or a loved one has suffered from a serious illness, which has left you with medical bills, doctor bills, hospital charges, or any other type of medical related debt, then you may have to consider filing for bankruptcy as an option. You may be able to completely eliminate your medical bills by listing them in a bankruptcy.

With the rising costs of health care and the high cost of medical insurance for employers, it can be very costly if you or a loved one becomes sick or suffers from a long term illness. If the illness is serious or causes you to become disabled, then this can only compound your dire financial condition. If you are forced to incur medical expenses and doctor bills that you can’t afford, and if you don’t have the income to pay for these debts, then ultimately this can force you to file for bankruptcy. Many hospitals, doctors, x-ray groups, and ambulance services send out their receivables to be collected by third party debt collectors, or to law firms to sue you. These debt collectors will call you five times a week. Moreover, these debt collectors will try to “drive you to drink” by stressing you out with endless phone calls and by sending you countless threatening letters. Meanwhile, the collection law firms will sue you, and once they obtain a judgment they will seek to garnish you for 10% of your paycheck, try to seize your bank accounts, and file a lien on your home.

The United States is a great country. However, our health care system is the “pits.” Most Americans pay 30% to 45% of their yearl income in taxes, and they can’t even have their Government provide health care services. In most of the countries in the European Union and in Canada, all of their citizens are provided with free health care. I don’t know why the United States does not provide health care to all of its citizens. In my opinion, our country is too obsessed with the military and in creating needless wars. Our country should be using more of its resources on creating a National Health Care System. A U.S. citizen should not have to file for bankruptcy if he gets sick, and it he is overwhelmed with outrageous medical bills.

I also believe that the state medical boards should be compelled to license more doctors. More medical schools should be built and more people should be trained to become doctors. In the past two generations the amount of lawyers has increased tremendously. Consequently, the overall price of legal services has decreased substantially because there are more practicing lawyers. I am certain that if the number of doctors increased, then the price of medical services would also be substantially reduced as well. Part of the health care crisis really boils down to a simple “supply and demand” analysis. If there are more practicing doctors in the United States, then the price that they charge would be reduced based on commonly accepted economic principles and doctrine.

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