After a cancer diagnosis, people’s expectations for life tend to shift dramatically. Their top priority becomes achieving remission. They talk with their doctors to develop a treatment plan. They undergo surgery and a variety of other types of invasive, debilitating care intended to kill the cancer.
Successfully achieving remission is a major personal victory. The patient can slowly start to recover their health after finishing their treatment. They may return to their career and start pursuing things that make them happy again. Unfortunately, those celebrating their successful cancer treatment often have to temper their enthusiasm. Their medical victory often comes at a significant financial cost.
Cancer treatment often leads to debt
According to research by the American Cancer Society, over half of cancer survivors end their treatment with significant medical debt. Of those with cancer-related debt, a majority of them experience some type of aggressive collection activity.
It is common practice for hospitals and other care providers to sell medical debts to third-party collection agencies. Other times, they may seek to place liens against cancer patients’ homes to ensure that they pay what they owe.
Why does cancer lead to debt?
For-profit medicinal facilities and health insurance companies combine to put patients in need of intensive support in difficult positions. Frequently, cutting-edge treatments, such as brand-new immunotherapies, may not be eligible for insurance coverage.
Even if cancer patients have the best insurance possible, they probably have a large deductible to pay and possibly coinsurance responsibilities. They may have to pay 10% or more of their total care costs. They could end treatment with six figures or more in debt in some cases. Combine that with being unable to work due to the impact that cancer and cancer treatments have on human health, and that is a recipe for financial disaster.
How can bankruptcy help?
People who have just completed cancer treatment may have relatively low incomes. They may be able to qualify for Chapter 7 bankruptcy proceedings. Even if they prefer Chapter 13 bankruptcy to protect more of their assets, it may be possible for them to limit how much they spend on their medical debts.
Medical debts are typically unsecured financial obligations unless creditors have already taken legal action. Cancer survivors can potentially pay down their debts before discharging them in a Chapter 13 bankruptcy. They can discharge their medical debts within a matter of months if they qualify for Chapter 7 bankruptcy.
Eliminating the stress of overwhelming medical bills can help people move on after beating cancer. Personal bankruptcy is one of the most effective solutions for those dealing with stressful debts after successful cancer treatment.
