Readers of our Birmingham bankruptcy blog may be interested to know there are many reasons behind a personal bankruptcy filing. The loss of a job, prolonged unemployment and business failure are all reasons why individuals choose to file Chapter 7 bankruptcy. A medical condition resulting in unmanageable medical bills is also a leading reason for personal bankruptcy filings.
This is the case for one family, whose crushing medical bills has left them on the brink of bankruptcy. The husband underwent major surgery last summer to remove tumors that had grown throughout his digestive tract. Nearly his entire digestive system had to be rerouted. The operation was successful. However, the gentleman and his wife of 36 years were left with a mountain of medical bills.
The medical bills total more than $250,000. This does not include his seven day hospital stay. He has insurance, but does not know how much of the bills will be covered depending on the health insurance policy's limits. Both husband and wife currently suffer from serious medical conditions. They spend nearly $800 a month on prescriptions alone. He had hoped to retire sometime this year, but now believes that is not an option.
For Birmingham residents facing overwhelming debt such as the couple in this story, a Chapter 7 bankruptcy filing may be the best way to get debt relief and a fresh financial start. Chapter 7 can get rid of your legal obligation on things such as medical bills, credit card debt and personal loans. You will instantly be protected from creditor collection attempts upon the filing of your bankruptcy case. There are certain qualifications that must be met in order to file Chapter 7, however. For this reason, it's important to speak to an experienced Alabama bankruptcy attorney regarding your debt relief options.
Source: The New York Times, "Medical bills crush Brooklyn man's hope of retiring," John Otis, Jan. 18, 2013