Medical bills are the number one reason for personal bankruptcy, with 2 million people annually filing for this reason. And even those who don’t file for bankruptcy still struggle with repaying these bills. In fact, about 56 million adults, which accounts for 20 percent of the population between ages 19 and 64, will struggle to pay health care-related obligations this year.

If you’re facing a large amount of medical debt, what’s the best way forward and when does it make sense to explore bankruptcy?

You may feel overwhelmed at the prospect of paying back thousands of dollars in medical debt. Moreover, your ability to pay these obligations may feel impossible. But the first step in getting this type of debt under control is making the debt more manageable. Here are a few tips.

Read your bill carefully. Whether you have medical insurance or not, you should scrutinize all medical bills. Look for billing errors — double billings, medications you didn’t receive and other items that are out of place. Your hospital may not give you an itemized bill unless you ask for one.

Negotiate your balance. Medical providers often don’t want to send patients to collections; they just need to get paid. Explain your situation, and ask if they’ll consider reducing your bills to a manageable amount.

Request a payment plan. If you can’t pay the entire amount upfront, request a payment plan. You may be surprised to learn how far you can stretch the payment terms on this type of debt, making repayment doable. However, make sure to get a written confirmation of your plan.

Ask about special hospital plans. Many hospitals, especially nonprofits, offer programs that offset the cost of care for those in need. Don’t feel embarrassed to ask a hospital financial counselor what your hospital offers.

Despite your best efforts, there are times when all your resources have been exhausted and medical debt is simply unmanageable. For these cases, it makes sense to speak with an attorney about bankruptcy options. Medical bills are usually considered “general unsecured debts,” and as a result, you may be able to eliminate these obligations through Chapter 7 or Chapter 13 bankruptcy.

For more information, please contact us today at 914-946-2889 for a free consultation.

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