Research in the United States has shown that the greatest cause of bankruptcy, is medical debts; it is, therefore, very important that one use the legal assistance of an attorney to make sure it does not come to this. Trying to settle a medical debt, by yourself, without any professional aid, might not be that easy and (eventually) one may find himself bankrupt.
There is a great difference between medical debts and other unsecured debts. One such difference is that medical expenses arise accidentally, and, therefore, accumulate to very huge amounts – if it is not taken care of. One does not plan to become sick. Accidents and emergency surgeries might not be covered by any health insurance, and this means that the debt may increase to an inflated amount – that gradually results in bankruptcy. To add insult to injury, debt collectors (like diversified consultants, for example) are lining up to wreak more havoc on your finances!
Some health institutions have state law lien rights; this means that, if you are treated (as a patient), and fail to pay medical debts, the health institution will report the debt to the county records. And since the lien is recorded as part of a public statement, in public records – your payment habits are publicly exposed, for all the world to see. And such a thing can lead to trouble and all kinds of adverse effects.
The first step in eliminating a medical debt, is by verifying the debt’s balance. One should verify how much a debt is, by contacting the health institution or the creditor. It is, therefore, very advisable to hire professionals to assist you in pressuring creditors to give you the specific amount of the debt. So, when you pay the debt (in full), no remains of the debt will linger, and come back to bite you, in the future; so, the debt will be eliminated in time, without adverse effects, such as bankruptcy.
Another tactical measure one can employ in eliminating a hospital debt, is by use of his/her credit card. One can settle a medical debt using a credit card. This means that now the debt is settled as a consumer debt. It is advisable to take advantage of this, to prevent medical debts from accumulating – eventually leading to bankruptcy. Be wary of overindulging in the use of credit cards, as it, too, can lead to conflict with eos cca or other debt collection agencies.
Another advantage of hiring an attorney, is using them to help you settle the credit card debt that may have resulted from using your credit card to settle a medical debt. They are able to negotiate with the bank or the issuer of the credit card and help you settle the debt.
Medical debt settlement normally refers to the process of negotiating with a health provider (or a credit card company) with the intent to reduce a medical debt, without bankruptcy. Attorneys help in such negotiations, so that both parties agree on a payment plan to reduce and eliminate the medical debt (in full) without any need for bankruptcy proceedings.
Settlement is very important, as once it is achieved, it helps individuals to move on with their lives – comfortably, without having the financial strain of paying off big debts that accumulate over time; under extreme conditions, in a climate of long-term financial strain – bankruptcy is not too far behind, . It is, therefore, worth your while to spend a little money on an attorney, now…to avoid spending a lot of money mismanaged debt, later.
Once a legal professional is hired, it also means that the client will always receive counsel not just on issues of medical debt, but also will receive helpful directions on how to take care of other debts. For starters, an attorney will, for example, notify all of his client’s creditors, that all debt issues are no longer handled by his client, directly – but will be relayed through the attorney’s office, first. This helps a lot, even in relieving the stress resulting from the type of pressure clients have to endure from creditors, under these circumstance. So, if you are being harassed by a collection agency, like portfolio recovery, you may want to consider legal counsel.
The legal professionals adds an intimidation factor, keeping creditors in check, as they are now aware that the debtor now has a legal adviser. Under this circumstance, one is now able to work in a way that is conducive to earning more, and settling all the debts, as soon as possible, without any stress or overwhelm.
Indeed, medical debts cause personal bankruptcy, especially since they accumulate rapidly and become very impossible to settle – even by means of a regular paycheck. Attempts to settle, under such circumstances, can also be a serious strain on one’s lifestyle, family and general financial status.
It is, therefore, urgent to obtain a suitable settlement plan, to pay off medical debts, so as to avoid the adverse effects that accompanies going into default.