Most people assume that the leading cause of bankruptcy is poor money management. Though this is a huge factor, it isn’t the biggest. The leading cause of bankruptcy is actually medical bills. Despite good intentions and financial responsibility, many people become victims of circumstances outside their control. An unexpected medical emergency can lead to tens or even hundreds of thousands of dollars’ worth of medical bills. If you find yourself weighed down with medical debt, you’re probably wondering what you can do about it. Is bankruptcy the best option? Are there other options that might be better? Here are a few tips for dealing with medical debt. Before you file for bankruptcy Often, bankruptcy is the first thing people consider when a mountain of medical debt looms over them. While bankruptcy is certainly a viable option, it probably shouldn’t be the first thing you try. Bankruptcy is probably the quickest way to eliminate medical debt, but it also comes with some long term consequences. There are a few other alternatives you might try first before filing for bankruptcy: Check the statute of limitations. Unsecured debts can eventually become too old to collect on. Check the laws in your state regarding the statute of limitations for written contracts. An attorney may be able to assist you. If you are sued, you can show that the statute of limitations has passed and have the case dismissed Speak with the medical provider. In most cases, the medical provider will be willing to work with you to create an affordable payment plan. Ask to speak with a representative at the patient accounts desk and bring basic financial information such as proof of income Pursue a settlement. If you have some cash, or assets that can be sold for cash, you may be able to reach a settlement. Medical providers know that if you file for bankruptcy, they probably won’t receive any payment. As a result, they may be willing to settle for a portion of the money owed Get financial counseling. Look for a non-profit financial counseling agency that can assist you in resolving your medical debt A last resort If you have exhausted these options and still have medical debt you cannot pay off, you may want to consider bankruptcy. A consultation with a bankruptcy attorney can help you determine whether bankruptcy is a good option for your situation. Business, real estate, and bankruptcy law and litigation news brought to you by mbblegal.net Source: foxbusiness.com/personal-finance/2013/11/29/resolve-medical-debt-before-marriage/
