Are you overwhelmed by the medical debt you have accumulated? If so, you are not alone. Many people find themselves unable to pay hefty hospital bills. Unfortunately, medical debt can affect your credit history especially if the hospital decides to refer your case to a collection agency.

How can you manage unpaid hospital bills?

First, get a clear idea of how much you owe. This should be easy. Just ask someone from the hospitals billing department to send you a detailed bill of the services you have received and the cost of service. Details such as cost of tests, scans, and doctor’s fees should also be included in the itemized bill. Once you receive the detailed bill, verify it and make sure it is correct.

Next, think about a plan that would allow you to repay the outstanding amount without getting you in a financial bind. The best thing to do would be to try and negotiate a plan with the hospital. Explain your financial situation to them and work out a plan that permits you to pay off your debt in installments. Remember to be honest and practical about the amount you can pay each month. Ask the concerned authorities about any late fees or miscellaneous you will have to pay so that it does not come as a surprise.

Once you have worked out a plan, try and pay your installments on time. You can either pay in person or by check or online.

Demand that the hospital provides you a receipt for every payment you make. Keep the receipts safely so that you have ample proof that the bills have been paid. You can also ask the hospital to give you a statement mentioning that your bills have been cleared.

If you cannot afford to pay in installments, try and seek help from charities. Several charities are willing to help those who genuinely require financial aid with their hospital bills. Search the internet for charities which offer financial help with medical bills. Medical Billing Advocates of America is one such charity. There are several others which you can approach.

Some people choose to declare bankruptcy in their efforts to get relief from hospital bills. Try your best not to do this. Bankruptcy is sure to be on your credit record for a long time and this will not create a good impression with those who run a background check on you. For instance, you may need to get one done while looking for a job.

Similarly, mortgaging your house or paying off your hospital bills with your credit card is not a good idea. You will have to pay interest while repaying the debt. Medical bills do not charge interest so by choosing to pay it though mortgage or credit card; you will be spending money unnecessarily. Moreover, you will be paying an even bigger amount than you would if you negotiated with the hospital directly. Also you will be putting your home or property at risk.

Debt collection agencies are another hassle you will have to deal with if you have unpaid hospital bills. You can ask debt collectors to verify your debt before they contact you so that you get some time to arrange for payment. You can also request them not to contact you while you work out a suitable medical debt repayment plan.

Clearing medical debt requires a good deal of patience and negotiation from your side and from the hospital authorities. You can work out a plan together that works fine for both parties.

One more unimaginable thing is happening. GM may file for bankruptcy if the bailout fails. GM’s auditors have raised “substantial doubt” about the troubled automaker’s ability to continue operations, and the company said it may have to seek bankruptcy protection if it can’t execute a huge restructuring plan. GM revealed the concerns in a filing to SEC.

“The corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” auditors for the accounting firm Deloitte & Touche LLP wrote in the report.

More details are here. I hope that union workers understand the severity of the issue and work with the management to save the company.

Today, automakers got the life line from the government. It might save them and their employees. Other companies that went bankrupt recently were not lucky. Hundreds of thousands of workers lost the jobs because the companies entered bankruptcy. What will happen to the pension, 401k and health benefits of the employees if their companies are bankrupt?

Pension plans of bankrupted companies can’t be touched by creditors by federal law. Pension Benefit Guaranty Corporation insures the pension plans.

401k plans are also shielded from creditors by federal law. However, there is no insurance for 401k plans. If you made some poor choices in your 401k plan of if you have invested heavily in your (bankrupted) company’s stock, your 401k will suffer.

If the company files for Chapter 7 bankruptcy, your health benefits will be gone immediately. You will have no health insurance coverage at that point. However, if a company files for Chapter 11 bankruptcy, the health benefits will still continue for the employees. If health benefits are taken away from the employee, he/she should still be eligible for COBRA although the premium will be lot more expensive. If your spouse is working, it’s better to add yourself to your spouse’s health plan rather than opting for COBRA.