With medical debt burdening one in five Americans and causing over 60 percent of bankruptcies, it’s no wonder there’s been a political and populist outcry over health care!
As employers begin trimming health coverage and costs continue to rise, more families are seeking the advice of a Dallas bankruptcy attorney to relieve their financial stress. Fortunately, there are ways to reduce medical debt and regain your financial footing.
Medical Debt After Illness
If you were involved in an unexpected accident or illness, medical debt and expenses can compound quickly. Before seeking the guidance of a bankruptcy attorney, there are methods you can employ to deal with medical debt.
- Find a High Deductible Health Plan. This catastrophic health coverage has deductibles up to several thousand dollars and can prevent you from getting into tens of thousands in medical debt. Be sure the National Committee for Quality Assurance accredits the plan.
- Since one audit showed that 90% of hospital bills are “grossly overcharging,” it may be possible for you to negotiate your medical debt. Health care providers would rather negotiate a debt settlement agreement with you than risk having you meet with a bankruptcy attorney. A bankruptcy leaves them with the whole bill, whereas negotiating still has you paying.
- Don’t pay with a credit card. Many people struggling with medical debt are tempted to pay with a credit card and pay those bills later on. However, this could do more damage to your credit and force you to meet with a bankruptcy attorney.
- If no other options appeal to you, you might decide to pursue a bankruptcy. Meeting with a bankruptcy attorney will help you determine with Chapter 7 or Chapter 11 is the best way to deal with your medical debt. It can be difficult to determine which bills can be discharged and which ones cannot, but a bankruptcy attorney can answer those specifics for you.