Medical emergencies can happen at any time and drive a person into a severe financial crisis. If you don't have insurance, you are particularly in trouble. Some procedures could end up costing you millions of dollars. Thankfully, you can offset this debt with the help of a letter of hardship or even bankruptcy.
Huge Medical Emergencies Can Cause a Bankruptcy Situation
Medical bills without insurance can set you back hundreds of thousands of dollars. While your medical provider will set up a payment plan for you, there is a good chance you will be paying on that procedure for the rest of your life. If you have no insurance or are between jobs and struggling financially, you may need to declare bankruptcy.
However, there is one step to consider taking before that. Writing a letter of hardship may sway your medical provider into waving away your bills or greatly reducing them. Understanding this letter can help you avoid bankruptcy and the credit problems it can cause.
A Letter of Hardship Can Help
A letter of hardship is designed to tell your medical provider why you are unable to pay your bills. This letter should include a variety of detailed information, including your current income, any other debts you may owe, and other items that may explain why you can't pay your bills. Usually, most providers will call you up after receiving a letter to talk about it. If they don't, bankruptcy is your only other option.
When That Fails, File Bankruptcy Properly
While you might be able to get many of your bills offset or even eliminated with a hardship letter, there's a chance that your medical provider may not agree to this step. If this happens, it is important to find a new provider who is willing to work with you and your lack of insurance. However, you need to take steps to declare bankruptcy on medical debt that you cannot eliminate.
Medical debt is, thankfully, not exempt from both Chapter 7 and Chapter 13 bankruptcy. It is considered unsecured debt that may be impossible for many to pay. For most people, Chapter 7 is probably the best bet. This is a good choice if your disposable income is low enough because there is no limit on the amount of medical debts you can write off.
Once you get your medical bills covered in bankruptcy, it is important to take steps to get medical insurance. This can help to avoid this problem in the future by making it easier for you to cover your medical bills. To learn more about your options, contact a local bankruptcy attorney.