Resnick Law, P.C.

1 (888) 724-4071

Free Phone Consultation

Call: (248) 642-5400

Menu
  • Home
  • Our Firm
    • Firm Overview
    • Attorneys
      • H. Nathan Resnick
    • Attorney Referrals
    • Views & News
    • Events
    • Careers
    • Close
  • Our Clients
    • Who We Represent
    • Results
    • Testimonials
    • Close
  • Practice Areas
      • Appeals
      • Asset Protection
      • Bankruptcy
        • Chapter 7 Bankruptcy
        • Chapter 9 Bankruptcy
        • Chapter 11 Bankruptcy
        • Chapter 13 Bankruptcy
        • Garnishment
        • Solutions Without Bankruptcy®
      • Business Law
      • Construction Law
      • Contracts
      • Corporate Litigation
      • Creditor Rights
      • Debt Relief Laws
      • Estate Planning
      • Foreclosure
      • Guardianship & Conservatorship
      • Liability of Electronic Communications
      • Property Tax Appeals
      • Real Estate & Zoning
      • Receivership
      • Short Sales
      • Trust & Probate Administration
    • Close
  • FAQ
    • Michigan Bankruptcy Laws
      • Chapter 7 Bankruptcy
      • Chapter 9 Bankruptcy
      • Chapter 13 Bankruptcy
    • Estate & Probate
      • Estate Planning Basics
      • Will and Trusts
      • Death and Taxes
      • Probate Law Questions
      • Other Assets and Tools
      • Changing Your Wills, Estates & Trusts
    • What is a Garnishment?
    • Close
  • Blog
  • Resources
    • Videos
    • Close
  • Contact
    • Close

Medical Bankruptcies: When Health Care Threatens Your Financial Health

March 14, 2016

cost-943762_1280 (2)What role does health care play in the world of bankruptcy?

In 2013, medical expenses were the largest cause of bankruptcy in the U.S., reportedly accounting for 62% of all bankruptcy filings.

Even more astounding is that most people who file bankruptcy based upon their overwhelming medical bills have some kind of insurance, albeit insufficient insurance.

These statistics predate the Affordable Health Care Act, and there are hopes that medical bankruptcies will abate; however some states like Oregon are noticing that medical bankruptcies are continuing apace even after the enactment of the ACA.

When a loved one is facing illness or surgery, the natural impulse is to sacrifice everything, including financial security, to improve their condition or even save their lives. When the medical bills arrive, many people will spend down their savings, tap into retirement plans and even max out credit cards to keep the medical creditors at bay.

Here are some things to consider if you have are facing overwhelming current or future medical bills:

  1. Insure yourself to the highest level you can afford. When money is tight, you are always better off to be insurance-rich and cash-poor. If you have limited money, it’s better to have health insurance costs deducted from a paycheck, the most expensive that you can afford, to avoid co-pays, high deductibles and high participation costs. Dental insurance provided by employers and vision care plans can also be huge savings, depending on your typical costs.
  2. When you receive a bill, look over it very carefully. Call the hospital or doctor if you have any questions. Because most bills are paid by a third party (the health insurer), there is very little incentive on the part of hospitals for medical bills to be accurate. A huge percentage of them have errors. We have seen a bill for a circumcision of a baby girl and two line items for the same surgical procedure. Nothing is impossible.
  3. Deal with your bills, even if it’s painful. If you get a huge bill, one that you will not be able to pay either fully or on time, contact the creditor and tell them that you will pay part or when you will pay (underpromise!) and that you will be seeking financial help to pay for the bills. Make a small payment on time, to show that you are not completely delinquent.
  4. Don’t tap into saving that you can’t replace to pay your medical bills. These include retirement funds and college funds.
  5. Don’t pay off your bills with high interest credit cards.
  6. Contact a bankruptcy attorney if you believe that you will never be able to pay off your medical debt, or if doing so will cause you to become delinquent in other bills. It is better to call a lawyer early in the process, as opposed to when you are deeply in debt.

Filed Under: Michigan Bankruptcy Tagged With: hospital bills, medical bankruptcy, medical bills, medical debt

Have Questions? Need Legal Guidance?

Have your case reviewed by a Resnick Law attorney today!

Get Started Now

Do You Have a Claim?

Call (248) 642-5400

Free Phone Consultations
Same Day Response

Practice Areas

Our Firm Is Your Solution For:

  • Asset Protection
  • Bankruptcy
  • Business Law
  • Testimonials
  • Appeals
  • Chapter 7 Bankruptcy
  • Chapter 9 Bankruptcy
  • Chapter 11 Bankruptcy
  • Chapter 13 Bankruptcy
  • Construction Law
  • Contracts
  • Corporate and Commercial Litigation
  • Creditor Rights
  • Debt Relief Laws
  • Estate Planning
  • Foreclosure
  • Guardianship & Conservatorship
  • Liability of Electronic Communications
  • Property Tax Appeals
  • Real Estate & Zoning
  • Receivership
  • Short Sales
  • Solutions Without Bankruptcy®
  • Trust & Probate Administration

Office Locations

  • Bloomfield Hills – (248) 642-5400
    40900 Woodward Avenue, #111
    Bloomfield Hills, MI 48304

Stay in touch

Sign up to get interesting news and updates delivered to your inbox.

Our firm’s practice areas include:

  • Appeals
  • Asset Protection
  • Bankruptcy
  • Business Law
  • Chapter 7 Bankruptcy
  • Chapter 9 Bankruptcy
  • Chapter 13 Bankruptcy
  • Construction Law
  • Contracts
  • Corporate & Commercial Litigation
  • Creditor Rights
  • Debt Relief Laws
  • Estate Planning
  • Foreclosure
  • Guardianship & Conservatorship
  • Liability of Electronics
  • Property Tax Appeals

 

  • Real Estate & Zoning
  • Receivership
  • Short Sales
  • Solutions Without Bankruptcy®
  • Trust & Probate Administration

 

Martindale-Hubbell
dbusiness
Resnick Law Peer Review Rated

Recent Posts

  • Struggling With Tax Debt in Michigan? Your Guide to the IRS Fresh Start Program
  • Successfully Addressing Diversity in a Post-Pandemic Workplace
  • ESG Disclosure Simplification Act Passed by House
  • Business Debt and Partnerships: What You Need to Know to Protect Yourself
  • Mergers and Acquisitions During the COVID-19 Pandemic

Office Locations

  • Bloomfield Hills – (248) 642-5400
    40900 Woodward Avenue, #111
    Bloomfield Hills, MI 48304

Connect With Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Get Help Now

Contact Us

Copyright © 2023 Resnick Law, P.C. All rights reserved · Disclaimer · Privacy Policy

Attorneys at Resnick Law, P.C. serve clients in Bloomfield Hills, Metro Detroit, the Tri-County Area and throughout southeast Michigan, including: Oakland County, Wayne County, Macomb County, Livingston County, Genesee County, Washtenaw County, Lapeer County, St. Clair County, Birmingham, Rochester Hills, Rochester, West Bloomfield, Bloomfield Township, Novi, Royal Oak, St. Clair Shores, Grosse Pointe, Walled Lake, Ferndale, Berkley, Sterling Heights, Clarkston, Farmington Hills, Ann Arbor, Howell, Brighton, Mount Clemens, Flint, Grand Blanc, Livonia, Dearborn, Troy, Plymouth, Pontiac, Northville, Southfield, Warren and Utica.

All materials and content in this Blog are provided for informational purposes only. Information contained in this Blog does not create an attorney-client relationship with Resnick Law, P.C. and any recipient of this Blog. The contents of this Blog, in whole and in part, are not to be construed as a legal opinion or legal advice. All materials and content in this Blog are provided for informational purposes only. Persons viewing information contained in this Blog should not act upon such information without first seeking appropriate and specific legal or professional consultation. Please contact an attorney at our office to obtain legal advice specific to your needs.

Viewing of this website does not create an attorney/client relationship with Resnick Law, P.C. All materials and content on this website are provided for informational purposes only. These informational materials are not intended to constitute legal advice and should not be construed as such, because each person’s legal matters are unique and results will vary. The contents of this website do not reflect current legal developments, verdicts, settlements or specific client endorsements. Persons viewing information contained in this website should not act upon such information without first seeking appropriate and specific legal or professional advice. Please contact an attorney at our office to obtain legal advice specific to your needs.