Take Control Over Medical Bills Without Declaring Medical Bankruptcy

We all know that the healthcare system in the United States is a relatively unsecure one. Many people can't afford treatments and many of those who do get treated can't pay back the insane amount that the healthcare system charges. Thousands to millions of people declare medical bankruptcy simply because they cannot afford to pay medical bills.

In 2003 and 2004, approximately 50% of bankruptcy claims was because of medical expenses, and that's with people who do have health insurance. The medical collection industry is reportedly 'inflexible' when it comes to making payment plans with their patients or making a settlement.

There are a few things that a person can do when thinking about filing bankruptcy. One option that is available is Chapter 7 Bankruptcy. This means that when filed, it clears all unsecured debt along with medical expenses.

The down side to this option is that once it is filed, it cannot be filed again for another 6 to 7 years. This is bad because if that person was to get sick or injured during the course of those 6 to 7 years, there will not be much to defend themselves against wage garnishments and liens. A lien is pretty much a form of collateral. A person gives them some form of property to ensure payments to the creditor.

Another option is that if a creditor was to sue for a certain amount, the person being sued can bring it to the court's attention that they are on a fixed income and can therefore declare their property and income exempt. Meaning they can't get wage garnishments or provide collateral.

Medical bankruptcy is commonly occurring because of the U.S. medical industry. Too many people are filing because they can't pay their bills. However, there are ways that people can take control over the situation and not ruin their credit.

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