If you are struggling with debt tied to medical bills, you’re not alone. Researchers have found that 66.5 percent of those filing for bankruptcy mentioned medical bills or being out of work due to illness as a cause of their economic woes. The costs of medical treatment can be staggering, even for those who have health insurance, and the bills generated by surgery or a hospital stay can easily push those who are already struggling to the point where bankruptcy is a consideration. The good news is that filing for bankruptcy will eliminate those debts, though that doesn’t always make it the best option.
Medical bills are considered dischargeable debt. Just as is true of credit card debt, filing for bankruptcy will stop all collection actions and can be completely eliminated in a Chapter 7 bankruptcy. But bankruptcy is not a ‘get out of jail free’ card. It comes with the downside of negatively impacting your credit for years and may force the sale of some of your assets. If your financial issues are specifically tied to your medical bills and your credit was good before those debts arose, it may be worthwhile to see whether other options are available.
Many people don’t realize that it’s possible to negotiate a settlement with their medical provider to address their uninsured medical costs. This step can only be taken once you’re certain that your insurer has paid all that they are going to. At that point, you can reach out to the provider and ask them if they are willing to provide you with a discount. Many will agree to write off a percentage of the outstanding balance, while others offer payment plans that will make it far easier for you to slowly pay down your debt without causing financial instability.
Though some people find it hard to ask for this type of assistance, doing so is always worth the effort, especially if the alternative is fending off collection calls or filing for bankruptcy. If the facility denies your request or you simply fail to pay you are likely to find your credit affected by judgments filed against you, at which point bankruptcy is probably the best route for you to take, as it will eliminate
collection calls, your medical debt and any other dischargeable debt you may have and put you back on the road to financial health.
If you are facing overwhelming debt, one of the best steps you can take is to seek advice and guidance from an experienced bankruptcy attorney. Contact us today to set up a time to discuss your situation.
