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Should you, or a family member, develop a serious medical condition, of which some or all the costs of treatment are not covered by health insurance, you may not have the ability to pay the resulting mammoth debt. Declaring bankruptcy may allow you to have these high balances erased to save your future financial stability.
For instance, you have health insurance coverage but your policy has a rather low “lifetime maximum” benefit. You develop a serious illness, say non-Hodgkin's lymphoma, which requires both immediate and longer-term treatment. After you finish your treatment, you're feeling better until you find out that you personally owe over $350,000, since your maximum benefit amount was not enough to pay for your care. With no way to pay this debt, you may consider filing bankruptcy as your best solution.