Rising Prices and Shrinking Options
As one of the largest sources of debt among individuals declaring bankruptcy, medical debt has become a major concern. Many people find this situation to be distressing, and they may be unaware of their relief options. Direct debt negotiations are often disregarded as a viable option. Although medical creditors may appear unreceptive to negotiation, they can be won over with minimal effort.
First, it is essential to determine how much you can afford to repay each month. Due to the fact that medical debt rarely incurs interest or penalties, even making the minimum payments is an effective method of repayment. Even if it takes longer to repay the debt in full, the creditor has limited recourse as long as you are making payments.
Next, contact the creditor and request assistance with payments. Inform them that you are experiencing financial hardship and cannot afford the standard payment plan. Ofttimes, the best negotiating tactic is to offer to set up an automatic payment system through a checking account. Creditors are frequently willing to reduce payment requirements if they are assured of receiving a monthly payment through an automatic payment system.
Financially Bankrupt?
In Chapter 7 or Chapter 13 bankruptcy, medical debt is readily managed, giving debtors a chance at relief. For those who cannot afford to repay their debts and have been unsuccessful in negotiating a favorable settlement with creditors, bankruptcy is a powerful tool. All collection efforts will cease once you file for bankruptcy, and any subsequent attempts to collect must go through the court. This is typically a breathe of relief for many debtors who have been dealing with annoying collection calls for some time.
Depending on your financial situation, you may be able to have all of your debts eliminated in Chapter 7 for little or no cost. Nonetheless, this option is typically designated for those with inadequate incomes. In addition, Chapter 13 can alleviate medical debt by establishing a more affordable repayment plan that creditors must follow. The typical debtor can obtain medical debt relief within two to three years, if not earlier.""
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