Medical Debt Bankruptcy – Before Filing Bankruptcy Consider Debt Settlement

At one time if you had fallen into debt due to medical bills and could not afford to repay them then filing for medical debt bankruptcy was common. However today there are more options open to those suffering debt problems and they are typically less severe than bankruptcy.

Medical bills can add up to an enormous sum of money and if you suddenly become unemployed then you may be unable to find the money to pay off unexpected medical bills. In the USA, many of those who have filed for bankruptcy have done so solely due to medical bills. Before rushing into bankruptcy, you might want to consider taking on the help of a debt relief company and looking into other solutions, which are less severe.

Consider debt relief to reduce the amount you owe as an alternative

One of the things you may wish to look into is if a debt relief advisor may be able to get your debt reduced, which will allow you to pay off the remainder of the debt. While you may not be able to afford 100% of the amount you owe, you may be able to get this reduced by as much as 70%, which means that you have only to find 30% of your debts and can repay this in affordable monthly repayments. This can be a very effective, powerful and sensible way to clear your medical debts.

Medical debt bankruptcy should really only be considered as the very last resort. When you file for bankruptcy, even if it is only due to medical bills, it will stain your credit rating for a very long time. This may mean that you are unable to borrow in the future or if you find a lender willing to take you on, you may have to pay very high rates of interest.

In summary, you may be able to write off up to 70% of your medical debts and pay them off rather than filing for medical debt bankruptcy and have your credit rating affected for a long time. When entering into a debt solution it is essential that you keep up with the plan, even if you are unemployed and are looking for work.