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When insurance fails, debt relief is often necessary

On Behalf of | Jan 3, 2019 | Chapter 7 Bankruptcy, Firm News

Supporting a Florida family often requires more than a single income, but few need five incomes just to survive. That is the sad reality for one out-of-state family as they struggle to repay thousands of dollars in medical debt. For families in situations like this, personal bankruptcy might be a more appropriate option for debt relief.

The debt accumulation started when the couple had their first child. Despite it being an otherwise routine delivery, they received a $4,000 bill from their in-network hospital. From there the bills kept rolling in, with some debts as small as $300 and others accounting for upwards of $1,800. Some of those charges were apparently routine while others were for emergencies, including a hospitalization when their 2-month-old baby was experiencing breathing problems.

They now owe $12,000 on five different payment plans. Between the two parents, they work a total of five jobs just to keep their heads above water. The husband says that he sometimes works upwards of 120 hours a week, leaving his wife to shoulder much of the housework and child-rearing responsibilities on top of her own job. The parents are also ignoring addressing some of their own health issues out of fear of adding to their massive medical debt.

Like many others, this family had health insurance, but it had serious gaps that left them vulnerable to this exact situation. Many Florida families are in this exact situation, desperately fielding medical bill after medical bill despite have insurance coverage. Debt relief does not have to involve working oneself to death though, and many people find that filing for bankruptcy can provide a secure path toward financial security.

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