Mounting Medical Bills May Lead You to a Chicago Bankruptcy Lawyer

21-Oct-2010 When the economy is suffering many people are faced with the loss of their job. The current unemployment rate in Chicago is 9.9% which is just slightly higher than the national average of 9.6% as of September 2010. Facing unemployment can be very overwhelming and in some cases financially devastating.This loss of income can be very hard for families however it is not always the loss of income that causes people to explore filing for bankruptcy. In fact, in many cases it is the loss of medical insurance that is more damaging.

When medical insurance is lost a medical emergency can cause so much debt that it would force you into bankruptcy. Additionally the option for paying for insurance after losing your job can be very expensive and add further hardship after losing your income.

Some companies have researched ways to cut costs to avoid laying people off. Reducing or stopping medical coverage is a potential solution. In this case income hasn't changed but medical bills can still become so high that bankruptcy is the only option.

There are a few warning signs that you could be putting yourself at risk of filing for bankruptcy. When medical coverage isn't available some people will start to put prescriptions and medications on their credit card. When you are in a position where you cannot pay off your credit card bill each month this debt combined with high interest rates can lead to bankruptcy. In some cases people take out a loan against their home in order to pay off medical bills. Although you may have a lower interest rate by paying this way you are jeopardizing your home. Home values recently fell and borrowing from what little equity you have left is a recipe for disaster.

If you are doing well financially but have lost your health insurance consider making lifestyle changes to avoid needing medical care. Changing your eating habits and adding physical activity to your routine can greatly improve your health. Eating more fruits and vegetables while avoiding sugars, fats  and alcohol could save you from having to hire a bankruptcy lawyer.

If your medical bills are already too high you may be able to have them discharged through chapter 7 bankruptcy. Otherwise if income isn't an issue chapter 13 bankruptcy  can buy you some extra time to pay off your debts. A qualified bankruptcy lawyer can guide you through the bankruptcy process and advise on what type of bankruptcy will best suit your situation.

Chang and Carlin Disclaimer
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.