Using Bankruptcy Medical Bills To Your Advantage

Nowadays, medical treatments are priced five times more than they are used to be, even when you acquire them in the less expensive and less popular hospitals. Although people tend to avoid going to hospitals as much as possible, especially those who are without health insurance, there are circumstances that still lead them to the hospital doors. If truth be told, filing for bankruptcy medical bills is not a bad thing. In fact, it is considered to be an ideal financial option for those who are unable to pay their medical bills. Here’s how you can make the most out of bankruptcy.

Tip #1- Ask for the detailed hospital expenses. Even in the age of computers, it is still possible to make mistakes. Hence, it is important to ask for an itemized list of your hospital bills. This way, you can ensure that you’re paying only for the medical treatments that you have been given. You can also reduce the cost that the government has to pay once you file for bankruptcy.

Tip #2- Don’t be hesitant to ask for help. People tend to be scared of filing for bankruptcy. What they don’t know is that it is one of the best options when you’re faced with steep medical bills. You will no longer have to work on being qualified for various organizations and charity cases. In fact, you will no longer have to dread picking up the phone or receiving letters from the hospital or your creditors. Once you file for bankruptcy medical bills, most of your debts will be cleared, allowing you to live with a clean slate once again. However, it is important that you ask for advice and assistance from bankruptcy lawyers. They can help you keep the bankruptcy process as smooth-sailing as possible. They can also help you determine the right steps to take after bankruptcy has been filed.

Basics of Medical Bankruptcy

Have you heard of the medical bankruptcy? Well, you might think that this is all about being insolvent due to medical issues alone, and filing a ‘medical bankruptcy’ because of it. I cannot blame you for thinking that way because I also had the same first thought. It is a help for everybody, therefore it is a must that you have at least the basic knowledge about it. To help you be informed about this topic, here is some of the basic information regarding it.

Medical bankruptcy is a general term used to refer to the reason why a people need to file a bankruptcy. Actually, this is not a legal term. According to the its rules, if you are to file a medical bankruptcy, you need to either file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. In this filing, you need to comprise all your debts including all your medical debts and other unsecured loans. After some examination and it is proven that you are insolvent, they will free you from all your debts and will be declared into bankruptcy. When you file for a certain bankruptcy, you are required to list down all of your creditors, including your medical bills. This only clear up that ‘medical bankruptcy’ is not all about your medical debts.

Based on the statistics, provided by an article in CNN, medical debts is one of the basic reasons why people file bankruptcy. As a matter of fact, about 60% of the filed bankruptcy is due to medical issues. And almost all of these 60% are the single mothers and elderly.

Having health care insurance is not insurance at all. According to some medical bankruptcy statistics, almost 80% of the bankruptcy filers have insurance. This may be due to the fact that, even people have health insurance, they still bear most of the payments for the bills which forces them to file for bankruptcy.

Some of the people think that when you file a bankruptcy, doctors can refuse to cure you. Well, according to the federal law, those hospitals receiving subsidy from the government do not have the right to refuse from accepting a patient who had filed a bankruptcy. More often than not, the doctor and the patient are making agreement on the amount that the patient can afford to pay the doctor even he had suffered from bankruptcy.

Medical Bankruptcy is available for all who needs and who seeks for financial help. But I am advising you that filing it must be your last resort. This is not just a simple way for you to escape from your creditors and debts. It must be filed if you really do not have a choice and you can’t really answer for your obligations.

It is undeniable that only a few really had the knowledge about this fact. As a matter of fact, this is a right of all individuals; therefore you must have the knowledge about it. In all cases of life situation, being well informed is one of the basic keys in giving solutions to the problem you thought will never be solved forever. The facts that I have presented are just the basics, if you wanted to have a full grasp about medical bankruptcy, research and be informed!

Medical Debt In Bankruptcy

These days finding affordable healthcare can be quite challenging. Many people are uninsured or underinsured simply because they cannot afford to pay for health insurance. This becomes a big burden in the event an accident, illness or chronic medical condition develops. One of the most troublesome types of debts among Americans today, especially the elderly, is medical debt.

Rising Costs, Narrowing Options

As one of the largest sources of debt among people filing for bankruptcy, medical debt has become an issue of great concern. Many people find this situation to be stressful and may even lack the understanding of their options for relief. One option often overlooked is direct debt negotiations. While medical creditors may appear unwilling to negotiate, they can be won over quite easily with a little effort.

First, it is important to have an understanding of what you can afford to repay each month. Since medical debt rarely carries interest or penalty fees, even paying the minimum payments is a good strategy for repayment. Although it may take longer to repay the full amount owed, the creditor has little recourse as long as you are paying something.

Next, get in contact with the creditor and request payment assistance. Let them know you are experiencing a financial hardship and cannot afford a traditional payment structure. Often times, offering to set up an automatic payment system through a checking account can be your best bargaining tool. Creditors are often willing to lower payment requirements if they know they are guaranteed to receive a payment each month through an automatic payment system.

Financially Insolvent?

Luckily, medical debt is easily managed in either Chapter 7 or Chapter 13 bankruptcy, giving debtors a chance at relief. Bankruptcy is a great weapon for anyone who cannot afford to repay their debts and has had no luck negotiating a successful deal with creditors. Once you file for bankruptcy, all collection efforts will stop and any further attempts to collect must go through the court first. This is often a welcomed sigh of relief for many debtors, who have been battling nasty collection calls for a while.

Depending on your financial situation, you may be able to have your debts erased completely at little to no cost in Chapter 7. However, with option is typically reserved for those with less than sufficient incomes. Chapter 13 can also help relieve medical debt by developing a more affordable repayment plan that your creditor must adhere to. The typical debtor can find relief from their medical debts in as little as two to three years, if not sooner.