Medical debt can seem a cruel side effect of a health problem, leaving the victim overwhelmed with debt far beyond what they can repay. A bankruptcy may be the medicine you need to cure this debt.
August 08, 2012 /24-7PressRelease/ -- Medical Debt and Bankruptcy
Medical debt becomes an unfortunate reality when unplanned emergencies happen. No one expects or plans to be diagnosed with a horrible illness or serious injury, but sadly these events become a reality for many Americans each year.
The debt from medical expenses can push a household further into financial distress, but these undesirable circumstances can be managed. In fact, bankruptcy may provide a chance for a fresh start.
Damages to Credit from Medical Debt
At first glance, medical debt appears different from any other type of debt. It is often the result of uncontrolled situations that are no fault to the patient. Initially, payments that are not received typically do not affect a credit score.
Eventually, though, hospitals have to turn to debt collectors after a patient defaults on payments for several months. At this point, credit reports gain knowledge of the missed payments, and credit scores may suffer.
Bankruptcy as an Option
Although bankruptcy sometimes is seen a having a negative stigma, in medical debt scenarios, it may be a good solution.
Filing for bankruptcy can discharge the medical debt, freeing the patients and allowing them to make a fresh financial start.
While filing a bankruptcy will lower your credit score, so will missing payments on an overwhelming debt. However, bankruptcy enables a person to begin to establish a good credit rating once again.
Steps to Take
Medical emergencies are unpredictable realities, but there are solutions available to get the situation under control. If you are faced with mounting debt due to medical expenses, talking with an experienced bankruptcy lawyer may be a step in the right direction to ensure a new beginning debt free.
Article provided by B&B Law Group
Visit us at www.tampadebtsolutions.com
Press release service and press release distribution provided by http://www.24-7pressrelease.com