Overdue Medical Bills & Bankruptcy

The top cause of bankruptcy in the United States is unpaid medical debt, according to Dr. Sanjay Gupta on the CNN website. The high cost of medical procedures and care can jeopardize the financial state of anyone, even if you have insurance. It is important to take charge and get control of medical bills before too much of your personal life is compromised from the outstanding debt.

Medical Bills and Bankruptcy

Struggling to pay medical bills on recent surgeries or extended hospital stays will mean dealing with assertive bill collectors in the industry. The main problem most people in this situation run into is juggling between multiple bills from multiple health care providers, even if they are all relating to the same medical procedure. If this is not properly dealt with, individuals in this situation must endure extreme creditor harassment, which includes calling you at home, work or even calling your relatives. Medical debt is one of the debts that can be discharged through bankruptcy. Chapter 7 bankruptcy completely discharges the debt, while Chapter 13 bankruptcy gives the debtor three to five years to pay off what can be afforded. After the time runs out, all remaining debt is discharged. Bankruptcy has negative consequences on your credit score and your ability to secure future credit.

Medical Bills and Budget

In order to gain control and understand over all overdue medical bills, they must be gathered and organized. Write down the total of each bill to obtain the subtotal of all the bills to establish your total debt for future reference. Then, create and write down a budget to help you decide and expect a monthly payment you can manage. The goal of a budget is to try to get your total monthly expenses below or at least equal to your monthly income.

Cutting Costs

Individuals with monthly payments higher than monthly income will need to revise the budget and begin cutting costs. When such critical life situations are presented, you must make scarifies and live frugally to get out of debt. Things that should be cut include your cable bill, gym memberships, cell phone bill and all other things you can live without that will help bring the medical bills up to date, eliminating debt and the possibility of bankruptcy. It is only normal for individuals to face frustration when you have to eliminate luxuries you are used to, but the medical debt likely extends from necessary and even life threatening medical procedures, so it is important to consider what really is important in life. Your health should take priority over small luxuries like cable TV.

Get Help

Get help if you have such a significant medical debt that you cannot pay it. Call the hospital and explain your financial condition. Most hospital billing staff members will be able to help determine a monthly payment plan that will work for you. Pay bills on time, or rates will begin to increase. Set up automatic payments so you do not forget. You will get used to the monthly expense. If you cannot afford the payments, get a second job or sell some personal items to raise money. Speak to an experienced bankruptcy attorney as a last resort if you are still unable to get significant financial help through payment plans, reducing expenses and increasing your income. Most attorneys will set up a free consultation.