Hospital Credit Card Debt: What to Know
Medical debt has long been a major source of consumer debt and a primary reason that many individuals file for Chapter 7 or Chapter 13 bankruptcy. In the past, medical debt has often involved patients owing various debts to different facilities or owing money on a consumer credit card after charging a hospital bill or the costs of prescription medications. According to a recent report from NPR, a new kind of medical debt is taking hold across the country. In recent years, hospitals and other healthcare facilities have encouraged patients to sign up for hospital-specific credit cards or lines of credit to “consolidate health expenses.” This type of patient financing has led to even more medical debt, much of it unmanageable for consumers struggling to pay what they owe for health care.
What do you need to know about hospital credit card debt, and what are your options for dealing with it? Our Oak Park consumer protection lawyers can provide you with more information.
Medical Debt Now Includes a Significant Amount of Debt From Patient Financing
As the NPR report suggests, a significant amount of medical debt in the United States is now linked to hospital credit cards or lines of credit. Indeed, “patient financing is now a multibillion-dollar business, with private equity and big banks lined up to cash in when patients and their families can’t pay for care,” the report indicates. While providers “historically put their patients in interest-free payments plans,” they have now “welcomed the financing, signing contracts with lenders and enrolling patients in financing plans” that often result in patients paying a significant amount of interest.
Recent investigations into these patient financing credit cards and lines of credit suggest that “even with lower rates than a traditional credit card, the interest can add hundreds, even thousands of dollars to medical bills and ratchet up financial strains when patients are most vulnerable.”
Hospital and Facility Credit Cards and Lines of Credit Usually are Dischargeable in Consumer Bankruptcy Cases
While hospital-specific credit cards and lines of credit might be relatively new for many patients, it is critical to know that this type of medical debt is usually dischargeable in consumer bankruptcy cases, just like any other type of medical debt.
To learn more about filing for Chapter 7 or Chapter 13 bankruptcy due to medical debt, you should get in touch with a bankruptcy lawyer in Oak Park who can assist you.
Contact a Bankruptcy Lawyer in Oak Park for Assistance
Whether you have questions about your rights as a consumer when it comes to medical debt and hospital credit cards or you need assistance filing for bankruptcy in order to discharge medical debt, one of our experienced Oak Park bankruptcy attorneys can speak with you today. Many Americans struggle with medical debt, and it is a leading cause of consumer bankruptcy. While hospital credit cards and health care system lines of credit may be more common, it is important to know that this type of debt can often be discharged in bankruptcy, just like any other type of medical debt. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Bankruptcy Around the Holidays: What Should I Consider?
Debt Collectors and Debts Discharged in Bankruptcy: Five Things to Know
What do you need to know about hospital credit card debt, and what are your options for dealing with it? Our Oak Park consumer protection lawyers can provide you with more information.
Medical Debt Now Includes a Significant Amount of Debt From Patient Financing
As the NPR report suggests, a significant amount of medical debt in the United States is now linked to hospital credit cards or lines of credit. Indeed, “patient financing is now a multibillion-dollar business, with private equity and big banks lined up to cash in when patients and their families can’t pay for care,” the report indicates. While providers “historically put their patients in interest-free payments plans,” they have now “welcomed the financing, signing contracts with lenders and enrolling patients in financing plans” that often result in patients paying a significant amount of interest.
Recent investigations into these patient financing credit cards and lines of credit suggest that “even with lower rates than a traditional credit card, the interest can add hundreds, even thousands of dollars to medical bills and ratchet up financial strains when patients are most vulnerable.”
Hospital and Facility Credit Cards and Lines of Credit Usually are Dischargeable in Consumer Bankruptcy Cases
While hospital-specific credit cards and lines of credit might be relatively new for many patients, it is critical to know that this type of medical debt is usually dischargeable in consumer bankruptcy cases, just like any other type of medical debt.
To learn more about filing for Chapter 7 or Chapter 13 bankruptcy due to medical debt, you should get in touch with a bankruptcy lawyer in Oak Park who can assist you.
Contact a Bankruptcy Lawyer in Oak Park for Assistance
Whether you have questions about your rights as a consumer when it comes to medical debt and hospital credit cards or you need assistance filing for bankruptcy in order to discharge medical debt, one of our experienced Oak Park bankruptcy attorneys can speak with you today. Many Americans struggle with medical debt, and it is a leading cause of consumer bankruptcy. While hospital credit cards and health care system lines of credit may be more common, it is important to know that this type of debt can often be discharged in bankruptcy, just like any other type of medical debt. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Bankruptcy Around the Holidays: What Should I Consider?
Debt Collectors and Debts Discharged in Bankruptcy: Five Things to Know
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