Avoid Bankruptcy Because of Hospital Billing Tactics

If visiting a hospital isn’t stressful enough, it can also lead to financial ruin. While creditors, like hospitals, might have aggressive medical billing practices or unexpected charges, which is a nice way of phrasing it, I’ll call it legal theft. But medical debt commonly results in having to file for bankruptcy.

Okay, let me soften up my language since I’m not a fan of some of the tactics creditors take, so I’ll rephrase that to say shady billing practices.

Here’s what my YouTube video focuses on:

Medical Debt: A Leading Cause of Why Debtors File for Bankruptcy

It’s no secret that medical bills are a primary reason people file for bankruptcy. I know. Congress says it’s careless spending, so when they changed the bankruptcy law in 2005, they couldn’t help themselves, so they put the word “abuse” in the bankruptcy code. Now, it’s the Bankruptcy “Abuse” Prevention Consumer Protection Act (BAPCPA).

Have you ever met someone who purposely got sick to get tens, if not hundreds of thousands of dollars in medical bills so they can “abuse” the bankruptcy system? I admit that I haven’t.

Even with health insurance, out-of-pocket costs like deductibles, copayments, and uncovered medications can be overwhelming. Unfortunately, hospitals sometimes resort to questionable tactics to collect on medical debt.

How Hospitals Can Catch You Off Guard

Surprise! That word is exciting to hear on your birthday, but not when it comes to medical bills. Patients often unknowingly provide credit or debit card information during a hospital stay, only to discover they have had their credit cards maxed out. Even worse, then checking accounts are wiped out!

This YouTube video focuses on this controversial billing practice and the steps you must take to protect yourself.

In the meantime, spread awareness of this issue!

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can find additional category links below:

• Bankruptcy
• Your Wallet

Note that the information on this site does not constitute legal advice. Always meet with a qualified local bankruptcy attorney to discuss your specific issue.

Updated on March 28, 2025.

Updated on August 31, 2025.