Medical Debt - Bankruptcy Alternatives That Will Give You Freedom From Unpaid Medical Bills

Filing for Chapter a 7 or 13 bankruptcy is a debt relief option which millions of Americans choose each year. However, unless there is no other choice to remedy your financial situation, bankruptcy should be avoided and other options should be considered first.

Consolidate Debt
Lumping numerous debts and high interest loans into one amount will provide substantial savings in interest and late fees. It will also reduce the amount you payout since the consolidated loan will be considerably less than the sum of all the debt payments.

There are several ways to consolidate your debts. If you have equity in your home then this is a good way to lump these amounts into a low interest loan that is potentially tax deductible.
You can also apply for a debt consolidation loan. However, be sure to shop around for a financial institution that will give you the lowest interest rate possible.

The last resort is to place all payments onto a credit card. Although this is a viable option should other means not be available, placing significant debt onto a credit card usually ends up causing problems down the road because of high interest rates. If you do need to apply this option, get the lowest interest rate available and pay the balance off as soon as possible.

Work With Creditors
Go directly to each creditor and request to renegotiate a payment plan that better fits your financial situation. Many creditors will work with you if you can show them that you are in a critical financial situation which may lead to bankruptcy if left unchanged. Under bankruptcy, all debt is discharged and the creditors get nothing and must write off the entire amount. Most prefer to get something rather than nothing.
Seek Help from a Medical Debt Settlement Company

If you have a significant amount of medical debt, consider seeking assistance from a medical debt settlement company. These professionals are experienced at dealing with the various types of medical providers and can often get them to knock off 60-90% from your bills. This makes managing your debt situation much easier and relieves a great deal of the financial stress without filing bankruptcy.