Many people believe that people who find themselves filing for bankruptcy are doing so because they poorly managed their finances.  This can be true in many cases, but not in the majority.  Over 60% of all bankruptcy filings are actually the direct result in health care expenses.  The fact that most of these individuals live in a home that they own and have medical insurance is even more surprising.   Insurance was not enough to keep them from amassing almost $20,000 in medical obligations.

If you have health care expenses that you do not have the ability to pay, you may be considering filing for a medical bankruptcy.  It is actually very common that you would be considering this option.  Medical collectors are much more aggressive than other types of collection agencies.  When you are facing credit card default consequences, there is a very small chance that the lender will sue you.  Collection companies that work on medical debt are notorious for filing suit even over small balances.

If you feel that a medical bankruptcy may be in your future, there are several things that you will want to understand.  One thing to know is that there is no difference presently from a regular bankruptcy and a medical bankruptcy.  While there is legislation that is pending that would change this, this has not happened yet.  What this means to you is that you will have to qualify to file for a Chapter 7 in the standard way.

Although bankruptcy is often the best solution, you need to look at other options first.  Depending on your situation, medical debt settlement or debt consolidation may be better alternatives.  Filing for bankruptcy should be done only after considering all other options.

The history of you filing for bankruptcy will remain on your credit files for ten years.