It probably comes as no surprise that bankruptcy filings are expected to be as high this year as they have been since the bankruptcy laws changed in 2005.  While a large number of these are due to economic hardship resulting from the lagging economy, you may be surprised to learn that this is not the case for the majority.  In fact, it is estimated that 62% of all filings will be the result of unmanageable medical expenses. Medical bankruptcies are more common than most people think.

The two groups that are at the greatest risk of finding themselves in this situation are individuals over 65 and single mothers who don’t receive any type of financial support from the fathers of their children.  What is surprising is that of those filing for bankruptcy protection, the majority own their own homes and have medical insurance.

When you are facing this situation, you may indeed find that filing for bankruptcy protection is the best solution for you.  After all, unlike when you are dealing with credit card default, there is a very good chance that the collection agency will file a lawsuit.  In fact, getting served with a lawsuit is what triggers a large number of medical bankruptcy filings.

Of course, you need to first see if there is some other alternative that would save you from the experience of going through a bankruptcy.  For example, if there is equity in your home you may be able to get a medical debt consolidation loan.  Another alternative to consider is debt settlement, where you get the lender to accept less than the full amount that you owe them.

If you do decide to file for a medical bankruptcy, you will want to seek the advice of an attorney.  Since the bankruptcy laws have changed you must first qualify for a Chapter 7 filing.  Although current legislation may change this, all the rules that apply to a standard bankruptcy filing will apply to you.