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High medical debt can lead to bankruptcy

Some people have exorbitant medical debt, and this can cause considerable trouble with their finances. When these bills become so high that you feel you won't be able to pay for them, you might consider filing for bankruptcy based on them.

You must remember that you can't file bankruptcy only on the medical bills. Instead, you have to file on all the credit accounts you have, which does include credit cards and similar bills. You need to think carefully about this factor because you won't be able to open any new lines of credit or use credit cards unless you have the approval of the court.

Another factor to think about is that you might have to find a new doctor when you file for bankruptcy and include your medical bills. Some doctors might keep you as a patient, but they may require that you pay all fees up front starting from the time you file the bankruptcy.

It is a good idea to speak to the doctor's office to determine how they will handle the situation. This can give you time to find a new practitioner if necessary. You also have to think about the hospitals where you receive your care because those bills will be included in the bankruptcy case.

You will have to determine what type of bankruptcy you need to file. One form is a Chapter 7, which liquidates your nonexempt assets to pay off the debts in the case. The other is Chapter 13, which requires you to make regular payments to the bankruptcy trustee per the terms of the court order. Having an attorney familiar with bankruptcy can help you determine your next steps.

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