Advice On Avoiding A Medical Bankruptcy

Are you on the brink of filing for a medical bankruptcy and want to completely understand what can be done to break free of it? What you need to realize is that over 50 % of all bankruptcies are due to medical bills and other costs connected with medical facilities. The reason why you must realize this is because you are not alone and because of that there are always going to be people out there willing to assist you get your life back to where it once was.

To be able to help you get your life back to normalcy I have fitted 4 great methods to quickly avoid a medical bankruptcy. What you need to know about every one of these is there are great deals of other options as well but these are the shortest and most effective easy methods to stop a medical bankruptcy from happening. Just note that if you are not comfortable managing this on your own then be sure you get some good help or at least talk with somebody about what you are going through.

Tips On How to quickly avoid a medical bankruptcy.

Settle on the amount - Something that people do all the time is settling on an amount which they can pay back in a reasonable amount of time. Just like if you have a $ 20,000 doctor's bill that is past due then you definitely could perhaps get that discounted to around $ 14,000 and have all that setup on monthly bills. The reason why you really need to settle on the amount of money is because it won't show on your credit report if you do settle. What the majority of us think is that their medical bills will come about on their credit report but truthfully they only do if they are sent to collection. That is the main reason you need to do all you can to stop anything from maneuvering to collection.

Ask for discounted payments - If you are filing for a medical bankruptcy simply because things are too tight and you can't afford to pay for all your expenses and your day by day living then it is a chance to ask for a reduced payment coming from the medical facility. What the majority of us don't realize is the medical facility doesn't want to see you go through a medical bankruptcy and the explanation is really because they don't get anything out of the deal. This is why you need to call in and let them know what is happening and that you genuinely wish to have your monthly payment reduced each month.

Transfer amount to a credit card - This is normally not something I suggest doing but it is better than filing for a medical bankruptcy. What you must understand is if you transfer the amount you were supposed to pay to a credit card then you wont have any medical bills and with that your credit card companies wont have as much of a hold on your life like a medical facility would.

How To Pay Hospital Bills

It's incumbent upon you to know how to pay hospital bills. You can't just rely on insurance companies, hospitals, and doctors to make sure your hospital bills get paid. This isn't to degrade health care providers and medical professionals, but the system is run by people and fallibility is a constant when humans are involved.

One common proof of human fallibility can be gleaned from just checking your medical bill. Errors and redundancies in postings are common. You can't trust the system to work just because you don't understand what is posted there. Statistics show that more than half of hospital bills have errors in them. It's not uncommon for patients to be billed twice for the same procedure!

Once you receive a statement of your medical costs, you need to ask for an itemized bill that details your received services, laboratory fees, surgical procedure fees, and after care costs during your stay at the hospital. It usually takes about a month for the hospital to send you the bill, so make your request early. This way you can pay hospital bills on time.

Before you pay hospital bills, first make sure your bill contains no errors:

Look at the name on your bill and ensure that it's the same as on your insurance policy. That could be grounds for an insurance company not to pay hospital bills.
Check your social security and insurance numbers as well as your patient number and make sure they are correct.
Check the number of days you were billed for in the document and make sure the records line up with the actual number of days of your stay. Most hospitals don't charge the day of your discharge, so make sure to clarify this with your hospital.
Are you billed for a private room when you actually stayed in a semi-private room? It is your responsibility to know how much each room costs so you can check for discrepancies.
Did you get the five-star treatment in the hospital? Believe it or not, this could place additional burden on your pockets because the kind of hospital care you get depends on the level of care your doctor orders.
Are you billed separately for nursing care? Most often, nursing fees are included with the cost of the room, but there are hospitals that ask for another set of charges for the nurses.
Check for redundant charges. You don't want to pay for the same thing twice when you pay hospital bills.

The hospital pharmacy usually charges more for medicines that you can buy for less somewhere else. Tell your doctor beforehand that you would like a separate prescription for medicines to keep costs down. Every bit of savings will help you pay hospital bills.

It's important that you keep your own records of all the services and medicines you receive in the hospital. Personal records will help you counter-check your statement of account before you pay hospital bills.

M. Baylor, of Hurst Texas, grew up with both parents as doctors. Laws concerning medical care governed his fascination as he grew up. As a paralegal in Allmand & Lee, Marcus maintains an informative blog about medical bill debt, medical litigation, and the latest in the health care reform bills and government programs.

The Secrets About Medical Bills blog seeks to address all sorts of legal questions that people have on the subject. Providing insight and alternatives for those saddled with medical debt and issues that arise through no fault of their own, Marcus seeks to bring help to people who suffer financially due to health issues. Visit Marcus's blog to find out the latest legal tactics used to fight on behalf of the patient against health insurance companies.

Chapter 13: When Trying To Settle Bankruptcy Medical Bills

If your debts are too high but pride prevents you from seeking protection under Chapter 7 bankruptcy then Chapter 13 may be the option for you. Whereas Chapter 7 allows you to start with a clean slate, Chapter 13 is a repayment plan supervised by the court. If you fall within an income category or if you are currently unemployed, the court will also allow you to pay only a portion of the total medical debt. Most people who file Chapter 13 have incomes much higher than what Chapter 7 allows.

The repayment period under Chapter 13 bankruptcy is around 3-5 years. One advantage is you get to keep your non-exempt property, which would have been sold to pay of the creditors under Chapter 7 proceedings. People who file for Chapter 13 have something in common:

They want to pay their medical bills but their current situation does not allow them to do so.
Because of their medical bills, they are behind on mortgage or car loan payments.
You already filed for Chapter 7 bankruptcy last year or seven years ago. You can only renew application for Chapter 7 after eight years.

There are other requirements to filing Chapter 13 bankruptcy medical bills but a lawyer will be able to explain to you better the constraints and benefits of the proceeding. For example, you can't file Chapter 13 if your debts are already discharged more than two years ago. Filing bankruptcy medical bills also does not automatically eliminates taxes, alimony, child or spousal support, student loan or criminal and civil liabilities.

It's important that you consider all your options and reflect on the advantages and disadvantages of filing Chapter 13 or Chapter 7 bankruptcy. Don't jump to a decision without first consulting with your family, friends, co-workers and lawyers. Remember, you will end up dealing with the consequences of your actions so no matter how valuable their advises would be, the decision of whether or not you file for bankruptcy ultimately rests with you.

M. Baylor, of Hurst Texas, grew up with both parents as doctors. Laws concerning medical care governed his fascination as he grew up. As a paralegal in Allmand & Lee, Marcus maintains an informative blog about medical bill debt, medical litigation, and the latest in the health care reform bills and government programs.