- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Do you know anyone who filed for “medical bankruptcy “?
Posted on 11/25/23 at 10:49 am
Posted on 11/25/23 at 10:49 am
I work in the health insurance industry and while doing my continuing education, I learned that more than half of all bankruptcies are due to medical expenses. I’m just wondering how accurate that data is. In 25 years, I don’t recall hearing of anyone who filed for bankruptcy due to medical bills. I think it was a convenient statistic for the left when they were pushing Medicare for All and Obamacare , but I don’t think it’s a major epidemic that’s affecting many Americans. I know it happens ; there’s people walking around with absolutely no insurance at all and some of them end up with a critical illness and bankruptcy is a viable option at that point. But I mean come on. There’s charity hospitals, there’s go fund me accounts. If someone ends up on dialysis, it seems like a kidney foundation is ALWAYS there to pick up the expenses. I don’t think it’s a crisis in this country; at least I’m not seeing it. I think people without assets just take advantage of the bankruptcy option when it’s available. I think that situation is more common than someone losing their home, losing all their savings and then filing for medical bankruptcy due to medical costs.
Posted on 11/25/23 at 10:52 am to selfgen
It is hard to tell because a lot of bankruptcies stem from credit card debt. It is not uncommon for some of that credit card debt to include credit card charges for medical expenses.
Posted on 11/25/23 at 10:55 am to selfgen
quote:
I don’t think it’s a crisis in this country
Of course it isn't. It's a feature of the greatest system in the world.
You can literally discharge all your major medical expenses in bankruptcy and still never lose access to world class healthcare.
Seriously, if someone can't afford their medical bills are we really going to pretend their credit rating is a concern to them?
ETA: This line of logic never made sense but it was convenient to the Obamacare crowd so they ran with it anyway.
This post was edited on 11/25/23 at 10:56 am
Posted on 11/25/23 at 11:00 am to chinhoyang
More than half of my practice is bankruptcy. In my experience, I would say very few clients file PRIMARILY because of medical. Most clients at least have some medical debt in collections but it is usually the higher interest loan companies and the aggressive collectors who push people to bankruptcy. Some collection companies call/text or sue more than others. Most clients get annoyed to the point they finally file. A lot of medical debt doesn't try to collect very hard, at least where I am at.
I have filed a few younger people, say under 30, who had an accident or issue and racked up $100,000+ in debt because of no insurance. I have a filed a few of those primarily because of the medical just because there is no other way to deal with the large amounts - but that is nowhere near half of my filings.
I would guess the most common reasons are:
(1) Wage garnishment because of a judgment - usually from a small loan or deficiency after a repo'd vehicle. Here they can take 25% of your income. Once that starts, people want to file in a hurry.
(2) Chapter 13 to stop a foreclosure of their home
(3) Client tried to buy a vehicle and can't get a loan because of all the negative marks on their credit report so they want to clean it up
(4) Just annoyed by the nonstop phone calls and texts
I have filed a few younger people, say under 30, who had an accident or issue and racked up $100,000+ in debt because of no insurance. I have a filed a few of those primarily because of the medical just because there is no other way to deal with the large amounts - but that is nowhere near half of my filings.
I would guess the most common reasons are:
(1) Wage garnishment because of a judgment - usually from a small loan or deficiency after a repo'd vehicle. Here they can take 25% of your income. Once that starts, people want to file in a hurry.
(2) Chapter 13 to stop a foreclosure of their home
(3) Client tried to buy a vehicle and can't get a loan because of all the negative marks on their credit report so they want to clean it up
(4) Just annoyed by the nonstop phone calls and texts
Posted on 11/25/23 at 11:15 am to selfgen
A buddy of mine did after I ne of his children was born with some difficulties.
Posted on 11/25/23 at 12:24 pm to EsquireReb
quote:
More than half of my practice is bankruptcy. In my experience, I would say very few clients file PRIMARILY because of medical. Most clients at least have some medical debt in collections but it is usually the higher interest loan companies and the aggressive collectors who push people to bankruptcy
I don't do bankruptcy work, but I have noted that it is very different in Louisiana as it is in Texas. When you cannot garnish wages for most debt and the exemptions are huge, the collectors are less aggressive.
Your post was informative.
Posted on 11/25/23 at 12:36 pm to EsquireReb
quote:
I would say very few clients file PRIMARILY because of medical.
they would be yuuge dumbasses to do so, medical debt is the most negotiable, potentially forgiven debt out there
Posted on 11/25/23 at 12:55 pm to selfgen
It has been accurate for 40 years while you bloodsuckers suck up every nickel you can from sick people. It used to be of u can cancer a bankruptcy would always follow as your insurance maxed out but if you survived the bills keep coming. That’s what surprises most people is that most of the medical bankruptcy people have insurance. Why does this surprise you? Medical care sucks up most of the money in our economy at such an increasing rate it’s not sustainable
Posted on 11/25/23 at 1:41 pm to 777Tiger
quote:Agreed.
they would be yuuge dumbasses to do so, medical debt is the most negotiable, potentially forgiven debt out there
A reason for their generosity is that there is crazy amount of over billing cooked-in to American healthcare.
They bill $250k for a open heart procedure and their actual costs are a fraction of that amount.
Posted on 11/25/23 at 2:00 pm to selfgen
My largest debts are all medical.
It's insane what insurance didn't cover like testing.
Our Healthcare is fricked here and no one really wants to do anything about it.
I had one bill that was $35,000 but when in offered to pay cash it dropped to $9k so I put it on a card.
They over bill.
It's insane what insurance didn't cover like testing.
Our Healthcare is fricked here and no one really wants to do anything about it.
I had one bill that was $35,000 but when in offered to pay cash it dropped to $9k so I put it on a card.
They over bill.
This post was edited on 11/25/23 at 2:02 pm
Posted on 11/25/23 at 2:19 pm to selfgen
I think the stat was that half of all bankruptcies INCLUDE medical debt. But that’s not that surprising since in a bankruptcy they put in all debts so if you have an outstanding lab bill for $20 it’s going in there.
Posted on 11/25/23 at 2:23 pm to Napoleon
quote:
It's insane what insurance didn't cover like testing.
Our Healthcare is fricked here and no one really wants to do anything about it.
But birth control is free! Why do you hate women, MAGAt teabagger?
Posted on 11/25/23 at 2:46 pm to selfgen
quote:
I think it was a convenient statistic for the left when they were pushing Medicare for All and Obamacare
“Call it the stupidity of the American voter” I believe is what the ACA architect called it.
Posted on 11/25/23 at 3:12 pm to selfgen
I have known several people with cancer who had high medical bills. Local churches usually do a benefit to help pay them down.
Posted on 11/25/23 at 3:15 pm to selfgen
I didn't file bankruptcy but I lost a buttload of money, retirement accounts, destroyed my credit and still didn't pay everything in full from a 6 month stay in the hospital.
At a certain point it is better to stop trying to pay and let the bills go statute of limitations/fall off your credit report. I don't feel bad for some hospital "losing" $20k-$30k when they got paid hundreds of thousands of dollars and well, I had nothing.
Its really hard to lose income for over a year while racking up hospital bills and doctors bills. I am sure a certain small percentage of the population can handle that, but even though I thought I was well prepared... I could have handled a year without income... but not simultaneously racking up bills in the hospital.. but I guess I wasn't prepared enough.
At a certain point it is better to stop trying to pay and let the bills go statute of limitations/fall off your credit report. I don't feel bad for some hospital "losing" $20k-$30k when they got paid hundreds of thousands of dollars and well, I had nothing.
Its really hard to lose income for over a year while racking up hospital bills and doctors bills. I am sure a certain small percentage of the population can handle that, but even though I thought I was well prepared... I could have handled a year without income... but not simultaneously racking up bills in the hospital.. but I guess I wasn't prepared enough.
Posted on 11/25/23 at 3:16 pm to soccerfüt
quote:
A reason for their generosity is that there is crazy amount of over billing cooked-in to American healthcare.
They bill $250k for a open heart procedure and their actual costs are a fraction of that amount.
my wife had over half a million dollars of ICU bills for her mother written off 100%, and had a medflight in a jet for over a quarter of a mil for her brother written off 100% because she "speaks the medical insurance language" she's helped a lot of other people out with their medical bills too
Posted on 11/25/23 at 3:31 pm to selfgen
youve never had a long term issue or real emergency
Posted on 11/25/23 at 3:33 pm to selfgen
Oh, you sound like you are in the right industry to screw some people over. You have a messed up way of thinking, to state it politely.
Tons of people WITH medical insurance are buried under medical debt. Medical insurance is not a luxury all can afford, some people you may rub shoulders with in daily life even.
Please expand your horizons.
Tons of people WITH medical insurance are buried under medical debt. Medical insurance is not a luxury all can afford, some people you may rub shoulders with in daily life even.
Please expand your horizons.
Posted on 11/25/23 at 3:38 pm to selfgen
I know one person who did. Copperhead bit her when she was leaving her house for work. She was uninsured, and between several days in ICU and cost of antivenom, she owed over $180k.
Popular
Back to top
![logo](https://images.tigerdroppings.com/images/layout/TDIcon.jpg)