Texans can accrue debt in a variety of ways. When confronted with overwhelming debt, it can stoke fear, worry and concern as to how to handle it. One of the most common ways to accrue massive bills is through medical treatment. In addition to the debt itself, an added pressure is the constant phone calls and letters from creditors. Knowing about medical debt and how to counteract its challenges in a person’s life is key.

Possible debt solutions

There are strategies to address debt. This includes bankruptcy, but some might try alternatives first. People will commonly ignore the bills hoping they will disappear. This is a bad idea as the debt can result in collections and legal judgment. It will also harm a person’s credit score. Some people are not even aware they owe medical debt. If they are insured, there could be a copay and mistakenly ignoring it is the catalyst for financial issues.

Medical companies might be willing to negotiate what is owed. People assume that the bill is final, but reductions are possible. Like most debts, a medical bill can be paid off incrementally through a reasonable payment schedule. Some might have emergency funds to pay it off entirely. Those whose income is below a certain level might be eligible for Medicaid. This can pay for debt that was accumulated even before approval. While it is risky, some people with good credit and a high enough limit can pay the bill on their credit card.

A fresh start

Finally, those with massive debt they fear they cannot hope to pay could file a Chapter 7 or Chapter 13 bankruptcy. With Chapter 7, their assets are liquidated, but the unsecured debt is eliminated. For Chapter 13, keeping certain properties like a home and a motor vehicle are possible as it entails a payment plan. Debt can happen without warning. To stop creditor harassment and improve the financial standing, bankruptcy could be a way to clear medical debt. For guidance about bankruptcy or with another strategy to eliminate debt, a law firm experienced in debt relief could help.