One of the most common forms of debt for Arizona residents may be medical obligations. In fact, it is an issue that often leaves both the insured and underinsured wondering how large medical debts will be paid. Bankruptcy is an option, but medical bills can be different from credit card debt, so it may be worth investigating the possibility of creating a manageable payment plan or negotiating a reduced lump sum settlement.
It should be understood that unpaid debt does not follow a person around forever. Statutes of limitations vary from state to state, so it is a good idea to find how old the medical obligation is before taking any steps. If a suit is filed for a stale debt, evidence can be presented that may have the case dismissed. It may also be worthwhile to contact the provider of the medical services, as there is the chance that some form of payment plan can be approved.
People without insurance are often hit with higher medical bills than those who have coverage. The medical providers may be open to a cash settlement that is less than the balance owed on the theory that some payment is better than nothing at all.
Filing for bankruptcy is one method of debt relief, but it may be the most viable one for a person who is legitimately unable to meet outstanding financial obligations. An attorney with experience in bankruptcy law may be able to determine whether a Chapter 7 bankruptcy is a preferable alternative to attempting to negotiate alternative payment arrangements that may not be acceptable or otherwise possible.
Source: FOX, "Resolve Medical Debt Before Marriage", Sally Herigstad, December 03, 2013