If you are like many individuals today facing serious medical bills, it is important to know that you have options. The rising cost of healthcare, combined with the growing number of Americans without adequate health insurance has led many people to file for Chapter 7 bankruptcy. In fact, medical debt is the No. 1 reason people file for bankruptcy in the U.S. In 2014 alone, an estimated 40% of Americans accumulated medical debt resulting from a health issue. Instead of putting medical expenses on your credit cards or worse signing up for a medical credit card, here are some alternatives that can help you stay out of medical debt.
- Enroll in a payment plan. Certain hospitals and doctor’s offices offer payment plans for low-income patients. This will allow you to work out a payment plan directly with the healthcare provider, pay your bill overtime and avoid interest charges.
- Ask about charitable funds. If your household income is low enough, you may qualify to have your medical bill completely dismissed. Some hospitals have money set aside to pay for treatment of patients who cannot afford to pay their bill. This is especially common in emergency health situations. However, be warned the paperwork and forms involved is extensive but is worth it in the end.
- Negotiate a lower amount. Depending on the circumstances, you may be able to negotiate a lower bill. It never hurts to ask. In some cases, hospitals may agree to settle the debt for less than you owe.
- Consider taking out a personal loan. If you have exhausted your other options and still need help paying your bill, consider taking out a personal loan rather than using credit cards. If you have good credit and a stable income, you could qualify for a loan with an interest rate as low as 5 percent.
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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
