The Effects of a Serious Injury 

A serious injury from an accident (whether from work, at home, or anywhere else) can lead to a number of problems: from physical to financial. Aside from the physical pain and suffering, a serious injury can cause bills to pile up because you are not able to go back to work, and often serious injuries also call for expensive treatments. This often causes people with serious injuries to file for bankruptcy.

According to Hach & Rose, LLP, medical debt is accounted as one of the leading factors for bankruptcy filings, a great 62 percent for personal bankruptcy cases are due to medical debts. Once medical bills accumulate, they can completely devastate a family’s financial situation for a significant amount of time. Because of this, more than 25 percent of people choose to stop taking their medications to limit medical costs, a short term fix that often trigger more expensive medical treatments in the future.

Health insurance may be helpful, but it is not always enough to cover or act as buffer for the medical expenses. Even credit card charges will increase because of the expenses for medical treatment. Because of this, the majority would file for bankruptcy, but will it be a good option to pursue this option?

Filing for bankruptcy due to medical debt can depend on what type of bankruptcy you apply for. Chapter 7 bankruptcy tackles medical debts, and under Chapter 7 bankruptcy medical debts are treated as non-priority unsecured debt. This type of debt means that even if a part or the medical debt is paid during the bankruptcy, if discharge is given by the court then the medical debts can be completely wiped out. It is part of dischargeable debts that can be eliminated by filing for Chapter 7 bankruptcy, regardless of the amount of medical debt.

Once a serious injury occurs, it is important to focus on treating and healing the injury rather that worry about the excessive bills that come along with it. This is not easy to do, however since medical costs are high and when required treatment is long. Knowing your options to help you through a financial crisis following a serious injury can help ease you mind and will give you the chance to start your life over again.

2 Comments

  1. Pohl & Berk says:

    Thanks!

  2. CroweMulvey says:

    Law is always so puzzling to me, thanks for making sense of it.

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