Anyone now welcome for appointments!

Regardless of your situation, we have many appointment options available. Remote appointments are available for anyone. If you prefer a remote appointment, we are happy to assist you by telephone, zoom, skype, or any other online option that works for you.

Office appointments are available for anyone. Unvaccinated individuals coming into the office for an appointment, will be required to wear a mask.

Staff are wearing masks when outside of personal work space. If you would like an outside appointment, we are happy to accommodate. We are here for you and want you to be comfortable.

Inside appointments now available for all. Covid safety protocols are in place and all office staff are vaccinated.
Ed Shaw Law No Nonsense Legal Advice

Local Solutions For Local Problems

The role of medical bills in bankruptcy

On Behalf of | Sep 30, 2020 | Bankruptcy |

Health care costs in America continue to trend upward and insurance costs follow suit. The Affordable Care Act made health care more accessible to more people, but costs are still high. In fact, even with government assistance, many people cannot afford adequate health care. Because of this, Minnesotans may still end up with medical bills out of their reach.

CNBC reports that of all bankruptcy proceedings, medical bills contribute to 66.5% of filings. In fact, every year, medical bills cause around 530,000 families to file for bankruptcy.

Understanding medical bankruptcy

When finances spiral out of control during a health crisis, families often consider filing for medical bankruptcy. Credit Karma reminds readers that no legal term exists by that name. It only describes a reason people file for bankruptcy. Subsequently, individuals still need to choose Chapter 7 or Chapter 13 bankruptcy and follow the established processes for these.

Acknowledging the impact

Sometimes, bankruptcy really is the only suitable option someone can choose. It may allow the individual to erase debt and start over. Bankruptcy may also allow better debt restructuring, which may reduce payments. Even so, consequences exist. For example, the individual’s credit score may take a serious hit. This ding may last for up to 10 years. Depending on the bankruptcy route chosen, the person may also lose a significant portion of existing assets to repay the debt.

Lawmakers across the country have taken several steps toward expanding Obamacare to improve coverage availability and quality. Minnesota is one such state. However, it will take more than this to help protect residents from the potential need to file for medical bankruptcy.


RSS Feed