People diagnosed with cancer generally feel anxious about the future. They worry about the survival rate for the type of cancer that they have and the treatment options available to them. Often, worrying about the financial aspect of a cancer diagnosis only begins after treatment ends.
Patients who have successfully defeated cancer may then have another battle to fight. They have to deal with staggering levels of medical debt. Researchers believe that roughly half of all cancer patients incur significant debt while undergoing treatment. People who have recently completed cancer treatment may need to consider filing for personal bankruptcy.
Medical creditors can be aggressive
Hospitals, infusion clinics and other treatment facilities are often very eager to work with those undergoing treatment. They defer payments or allow people to pay whatever they can afford. Often, cancer patients cannot continue working while undergoing treatment.
However, once a patient completes their care, they may find that they face much more aggressive collection efforts. Facilities may sue people and seek to garnish their wages. In some cases, hospitals may pursue liens against a former patient’s primary residence.
Cancer treatment on its own can be incredibly expensive. Frequently, insurance only covers part of the cost of care. Certain cutting-edge treatments may not be eligible for coverage, and patients may have co-insurance that makes them responsible for 20% or more of their total care costs. When combined with a lengthy absence from work, the financial strain may be too much for an individual to readily overcome.
How bankruptcy can help
Cancer survivors who file for bankruptcy can avoid aggressive collection efforts. The courts can provide an automatic stay temporarily pausing collection efforts and lawsuits as soon as an individual files for bankruptcy.
So long as they follow all of the requirements for the type of bankruptcy they pursue, the filer can then discharge eligible unsecured debts, including medical debts from cancer treatment. Instead of letting stress related to financial challenges undermine the improving health of a cancer survivor, it is often better to eliminate the source of that stress to move on with life as fully and effectively as possible.
People worried about aggressive collection efforts may need help determining what type of bankruptcy to pursue and preparing the necessary paperwork. Using a personal bankruptcy filing to address medical debt can help people regain control of their finances at the same time that their health improves after completing cancer treatment.