Your Guide To Medical Bankruptcy

Bankruptcy is everybody’s worst nightmare, and there can be nothing worse than losing your home and other assets which are close to your heart & important to you. Though bankruptcy can occur for more than one reason, heavy medical bills and expensive medical treatments still come up as the biggest reasons for bankruptcy in the US. Patients with terminal problems who surpass their capacity to pay mounting bills, aren’t left with any hope, apart from bankruptcy; and this is why medical bankruptcies are common scenarios.

Also, the fact that the treatment and the bills have to be continued (even after bankruptcy is filed), is another reason why medical bankruptcies are so frequent. Patients are now finding it necessary to consult a doctor before filing medical bankruptcy, in hopes of avoiding a lot of problems. It may also be to the patient’s advantage to go to this website, to assess their financial stability, in terms of credit.

A medical emergency or a sudden illness is one of the most devastating things that can happen to anybody. Interestingly enough, few people seem to recognize the importance of being prepared. It’s no secret that some doctors receive incentives (from pharmaceutical companies) for recommending their products, you can avoid this by informing your doctor, beforehand, that you are on a budget – and, if possible, to prescribe you generic medicines (instead of brand named ones).

If the consumer that’s filing bankruptcy is sick or unable to work (or is a full-time caretaker to the patient), the possibilities of filing reorganization bankruptcy are limited; and the consumer will most likely have to file for a much more invasive liquidation bankruptcy. For healthy consumers, there is the prospect of rebuilding their finances through work, after filing bankruptcy.

Bankruptcy is a safety that you acquire after you have proven to the bankruptcy court of law, that you do not hold the capacity to pay your debts; and this financial security helps you make a fresh start, and pay off old debtors. However, bankruptcy cannot be filed again and again, or serially, as you may not be eligible to file it again (as there are various clauses concerning the second bankruptcy, which some tend to overlook). This is the reason why, before you file it, it is a safe bet to consider all the pros and cons, and get your finances in place, before you fall into deeper trouble. And if you do make the mistake of filing for bankruptcy, after the fact, there’s still help – can inform you on your consumer rights, in regard to bankruptcies.

In cases of medical bankruptcies, you should be aware of what the patient’s condition is, and checkups should be done beforehand. This is because you want to be very sure that, apart from the ailment you are facing right now, there is no other problems that may need expensive treatment. This is obviously because if you are not in a condition to pay your bills for the current treatment, you will not be able to take care of the expenses of another ailment that might arise later. This is why getting a checkup is important – to make sure the complete status of your health is already accounted for, before you file for medical bankruptcy.

Another reason why you must consult your doctor before you file bankruptcy, is because you want to consider every alternative before actually choosing bankruptcy. The doctor who has been treating you, knows your condition well, and he or she might be able to guide you in locating cheaper medicines or medical treatments – which might be available at other facilities; this could save you from filing a medical bankruptcy.

Also, if something like an unexpected ailment shows up in your checkups, your attorney can even postpone the bankruptcy, so that it is also included in the filing; and you are saved from the extra trouble. These are a few reasons why a doctor should be visited, before you file a case of bankruptcy. According to federal law, a bankruptcy can be posted on your credit report for a limited amount of time (7 to 10 years), after which, is must be removed; it can also be removed from your credit report, if the information about the bankruptcy is inaccurate – this website can teach you more about your consumer rights.

Be careful about paying your medical bills with a credit card, which will only bury you deeper in debt. It’s much easier to seek assistance for unsecured debts like hospitalization expenses, than use a credit card that will put your assets at risk (down the road).

Unlike emergencies which leave you little choice, it’s better for you to prepare for all financial contingencies, and seek help for medical bills, when the situations demands it – so that when you do make a doctor’s appointment, whatever the outcome may be, all of your financial bases are covered.