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What You Should Know About Bankruptcy and Medical Bills

Posted By admin || 20-Jun-2012

What You Should Know About Bankruptcy and Medical Bills

Medical debt continues to be one of the most common reasons why consumers file for bankruptcy protection.  Since unemployment continues to be a challenge for many Americans across the country there is a continued lack of  financial support for medical insurance coverage.  The same is likely for those who are underemployed.  Even some with medical coverage find themselves struggling to keep up with necessary expenses when an unexpected medical emergency happens.

While many may find personal debt such as credit card bills and outstanding loans overwhelming, others may find medical debt alone to be a big problem for several reasons.  Debt collectors for medical collection agencies, as well as hospitals and other medical-related businesses have become more aggressive with their collection tactics.  This may include forwarding delinquent accounts over for collections sooner than expected.  Outstanding medical debt is also being pursued in small claims court, which often comes as a surprise to patients and consumers.

Bankruptcy is often seen as a last resort for resolving outstanding debt.  The same is true for medical debt, especially when patients are unable to agree on an affordable payment plan with creditors.  Having limited income makes making payments more difficult which is why bankruptcy is a good option to consider.  The filing process helps stop wage garnishment , prevents further legal action from lawsuits served and helps protect personal property from being seized to satisfy creditors.  If you feel overwhelmed with outstanding debt obligations, review your situation with an experienced attorney to learn if bankruptcy is the best option for you.

Categories: Medical Bills
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