Avoiding Medical Bankruptcy

Being unable to pay your medical bills on the agreed date could land you into medical bankruptcy. And in fact, the amount need not be thousands of dollars. Statistics show that majority of the people who file for medical bankruptcy owe their debtors figures that fall below $5,000. The simple reason behind this is that their health insurance policies may not be able to cover their bills at that particular time.

This said, medical insolvency caused by one's inability to pay their creditors, who in this case happens to be the health care provider. In most cases, the creditors file for a petition long before you are aware that you are insolvent. It is not uncommon to hear that a person has been sued by a hospital for failing to pay at the slightest indication that they may not be able to do so.

Once your creditors have filed a case against you, you can, as soon as you can, file a petition against the case. However, you need to be able to prove that you are not as bankrupt as the creditors may want to portray you. You must also be able to demonstrate how you plan to settle the bill.

If your creditors have not sued you yet but you are already feeling overwhelmed by the amount of medical debt you owe, please consider all the available options that you have before filing for insolvency. For example, you could try writing to the hospital and explaining how you plan to settle the bill in monthly installments. Alternatively, you could choose to sell off some of your assets and use the proceeds thereof to pay your creditors.