Medical Bankruptcy

"Each year Two million Americans - those who file for Bankruptcy and their dependents - face the double disaster of illness and Bankruptcy", says a Harvard University research. It’s alarming to note that many times the medical debt causing a medical Bankruptcy is not an overwhelming figure. Statistics of 2003 shows that 20% of the Medical Bankruptcy cases filed had a medical doe of less than 1000 dollars. While 40 % of them involved a medical debt of under 4000 dollars and 13 % involving medical debts above 10,000 dollars. Another worrying factor is that a major percentage of those listing themselves for medical Bankruptcy are elderly people above 65 years of age.

An analysis of how the industry works will give offer you a startling thought and a coherent explanation for the above. The medical collection industry is invariably unflinching and provides no tax on the rules for even clients who do not have the money to pay up immediately. But before you have to take the drastic step of filing for a medical Bankruptcy it will be worthwhile to consider few of the following:

• Plan ahead with insurances
• Pay first always your critical bills like a mortgage loan.
• Carefully analyze your medical bills for there might be overlaps and charges for services you have not availed.
• Choose your help carefully as in finding a lawyer or taking service from that medical Bankruptcy consultant for it can also add to your dues list.

There is a trend by medical related businesses to even sue for trivial amounts like hundred dollars and take you to court. If you fall into the clutch of such a ruthless scenario and have your illness to battle, please do not jump for medical Bankruptcy; but weigh the alternatives too.

Option 1:

Get your creditor agree for an affordable repayment plan. This is next to impossible but le us pray for luck.

Option 2:

File for Bankruptcy under Chapter 7: This can save you out of all your unsecured debts including the medical debts. But if you do this, you cannot do this again for another six years and the chances for you to contract illness and the same scenario of having to face the medical debts are at large. Only respite will be to find an affordable medical insurance towards this.

Option 3:

If you have limited income and when you are being charged for medical debts, go to the court and prove your inability to the judge. Ensure that you tell it to the judge that you need exemption of your assets. It might be a cruel bad world there, but you have to fight on and move on.