Options To Avoid Medical Bankruptcy
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“Medical Bankruptcy” is a misunderstood and a misused word in medical finance. Rather medical problem is a major cause of bankruptcy in the United States. According to many surveys, it is shown that over 50% of all the bankruptcy cases are medical bankruptcy and most people file for bankruptcy due to medical bills.
According to a survey it was found out that mainly the middle class families are filing medical bankruptcy cases. Also most of them are highly educated and almost all of them have a college degree. So it’s a serious matter and needs a deep look. Also the creditors, nowadays, have started to push a bit harder. The insurance policies are not at all helpful. So isn’t there any way to come out of this misery? Yes, definitely there is. Let’s explore our options and how to file for medical bankruptcy if needed.
Do you have any home or some property that you have owned for quite long now? If you have it, then it can help you a lot. It has some equity values, and can help you to get some quick loans with very low interest rates, which could have been much higher otherwise. If the problem is much bigger then you can opt for selling the house (or any other property as the case maybe) to move in maybe say a smaller house or some flat. At least like this you can pay of your debts quickly and also neglect those creeping interests. This way you can neglect filing medical bankruptcy.
If you play it with a little wit then you can save yourself. You can transfer all the medical debts to your credit cards. This is a pretty good solution and lets you pay off your debts in monthly installments. But you must be aware of the situation where you can’t pay off your debts quickly then the interest rates of this credit card companies will crush you. But after transferring your debts to credit card you can’t apply for Medicaid, though you can save yourself from a bigger trouble of medical bankruptcy.
Another way you can save yourself is by negotiating with the doctors. You can always ask him to reduce your bills if you are underinsured. Doctor demand less charges from insurance companies because they negotiate well. Medical bills can be of huge amounts and can be frustrating. But you should know to negotiate it. You should talk carefully politely but stick to your point. Patience is important here, and what’s the loss if showing some patience can pull you out from medical bills and bankruptcy.
Credit counselors are of great help in these matters and can advice you on your debts and how to rebuild your credit to avoid medical bankruptcy. If you are having trouble managing your credit then it is advised to consult a credit counselor. If you are not willing to spend money in this respect then you can always visit the non-profitable organizations who serve your purpose with valuable advice free of cost.
If any of the above options are not valid for you then you only have the last option. That is, to file your ‘medical’ bankruptcy case. This can give you a new fresh start, though this may hamper your credit report. Consult a lawyer before filing a case of bankruptcy.
Always remember that you are not alone who is facing this type of medical bankruptcy. Always try to find out the correct procedure to solve your problem. Try to figure out your financial condition correctly and the helps you need. If it’s too difficult for you to reach to a conclusion then consult some professionals regarding bankruptcy medical bills.
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