Medical Bills- The Silent Threat to Your Finances

This podcast episode focuses on shady medical billing practices that may force you to file for bankruptcy. Discussions also focus on avoiding surprised billing on your credit card. A summary can be seen below.

Listen to the podcast.

Key Points

• Be aware of medical billing practices. For one, there’s the issue of double-billing. Two, over the years, clients have told me that they were billed on their credit cards without authorizing the charge.
• The same has happened with clients being wiped out financially by having their checking account overdrawn if the hospital has your debit card information.
• Without realizing it, debtors are handing over credit and debit cards as forms of identification, providing the hospital with the information they need.
• Getting a credit card maxed out or having all the funds withdrawn from a checking account will cause financial chaos.
• The fact that regular expenses such as car payments, mortgages, or rent have to be paid will likely result in filing for bankruptcy on an emergency basis.

Medical Billing Issues

While the common misperception is that the main reason for filing for bankruptcy is because of misuse of credit cards, that is simply not true. Studies dating back decades have consistently proven that the main reasons for filing for bankruptcy are medical bills, health-related issues, and divorce. Health-related issues do tie into medical bills, but it’s long absences at work that cause the debtor to fall behind on their bills.

Protect Your Credit Card

Of course, with medical bills, the fact is that even if you have health insurance, between deductibles and co-pays, not everything is covered. But to have your credit card maxed out or your checking account wiped out without knowledge will cause a financial emergency that can be hard to recover from.

If you enjoyed this podcast, feel free to listen to other episodes via this link. You can also subscribe to my YouTube channel. Be safe and healthy, and I wish you success on your financial journey.

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

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Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books.

Updated March 28, 2025.