Medical Bankruptcy or Settlement for Unpaid Medical Bills

Medical Bankruptcy or Settlement for Unpaid Medical Bills

Fighting an illness can be hard enough without having to face the medical bills afterwards.

Many people end up filing medical bankruptcy because the costs ran too high. Bankruptcy is a serious issue, one that should be avoided if at all possible. The ramifications from that filing will show on your credit report for the next decade. That is ten years with a poor credit history, something that can make your life even harder.

You may, however, be able to come up with a settlement for unpaid medical bills. Choosing a settlement for unpaid medical bills instead of medical bankruptcy will, in the long run, help you. Many medical agencies are willing to take a partial payment for their bills. During bankruptcy they receive nothing; at least with a settlement offer they will receive a partial payment.

If you are considering a medical bankruptcy you should consult a credit counselor first. They may be able to help you negotiate a settlement offer on your unpaid medical bills, greatly reducing your debt and helping you avoid bankruptcy.

If you have a lot of medical bills from a recent illness or injury you should contact your local hospital and begin arrangements immediately. Many hospitals will offer discounted pricing upfront for those paying with cash. Some private hospitals also have programs to eliminate medical bills through grants. The best way to combat these bills is to address the problem first before it becomes a major issue.

If you decide that the burden of the medical bills is too great and you must file bankruptcy, you must prepare yourself for the outcome. Bankrptcy, due to the harsh economy right now, has not been very easy for anyone. The court has the authority to force you into total bankruptcy (Chapter 7) or create a repayment plan that you may not be able to afford through Chapter 13. Forced sales of personal items to cover debts are no longer unusual. The bankruptcy process is often harder on the debtor than repaying the debt.

Finding help is the answer. A financial advisor or a credit counselor should be consulted before undertaking any specific plan. This way, someone with experience and knowledge of the system, can carefully look over your circumstances and advise you accordingly.

Talk to a bankruptcy attorney and begin the bankruptcy process today.

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