Medical Bills

Many people who are forced to declare bankruptcy typically have some type of medical bills that were incurred when they got hurt or sick during a time when they didn't have any insurance.  This is probably one of the saddest reasons that people are in debt, because it may not necessarily have had to do with them overspending or being greedy.  They simply to fell ill.  However,  all individuals with medical bills do not have to declare bankruptcy, another option is bill consolidation.  Whether one chooses to go to with a bill consolidation or to simply follow bankruptcy due to their medical bills, there are a certain number of considerations that must be made.

1. The Amount of Your debt: If your debt is perhaps under $30,000, which while not average for most Americans, but is close,  then they may want to consider consolidating their bills and not filing for bankruptcy. This is because the debt is still a manageable at this point.  It's when your debt amount becomes completely uncontrollable, that it might be absolutely necessary to go ahead and file for bankruptcy. 

2. How Much Other Debt You Have: Another consideration is whether or not you have a lot of other debt besides those medical bills.  If you are properly insured now, and you don't have a lot of debt outside of those medical bills, then you may want to a go head and consider debt consolidation.  Again, it depends on the amount of the debt, because unless you are a millionaire or pretty financially secure, then those medical bills, can get you into trouble really quickly and can be nearly impossible to payback.

3. If You Have A lot of Equity in Your Home:  If you have a lot of equity in your home then you really may want to consider medical bill consolidation.  This is because you can use the equity in your home to pay off or significantly pay down your medical bills.  If you don't, then obviously this would not be an option and you may have to consider bankruptcy. 

4. If You Have a Lot to Use: Even though the bankruptcy laws have changed and allow you to keep a lot of your major assets, if you file a Chapter 7, then you will lose everything.  So if you have a  lot to lose and can’t afford to make the payments even if you consolidate your debt,  then you may want to file a Chapter 13, were you will be able to keep your home and cars and work out payments for most of your unpaid debt.