June 29th, 2009

A recent study by Harvard University has found that medical bills are increasingly a contributing factor in the decision to file for personal bankruptcy. In fact, the study showed a medical bills were a contributing factor in 62% of all bankruptcies filed in 2007. Breaking down the numbers further, the study found of those filing medical-related bankruptcies, 78% had health insurance, two-thirds were home homeowners, and most had gone to college. Those with private insurance reported average medical bills of $17,749 while those who filed for bankruptcy who were not covered by health insurance reported average medical expenses of $26,971. Much of the bills were attributed to high deductibles and uncovered services coupled with the fact that many people pay for their medical bills on high interest rate credit cards. The full article can be read at: http://www.latimes.com/business/la-fi-medical-bankruptcy4-2009jun04,0,4193398.story .

Bankruptcy can bring relief when faced with overwhelming (and often unexpected) medical bills. In fact, medical bills will likely be completely discharged when included in a bankruptcy filing. Arizona Bankruptcy Attorney John Skiba offers a free bankruputcy consultation to discuss your current financial situation and what options are available.