Many people get into bankruptcy as a result of neglecting the responsibility of paying their creditors on a regular basis.
However, there is one form of insolvency that is not often talked about, that is medical insolvency.
You can find yourself in it if you have a sick person in hospital and whose bill keeps rising by the day.
In most cases, these people have some health insurance policies with certain firms.
Many of you who have health insurance polices will agree with me that these firms are some of the most inflexible of all.
This is because they rarely give you long periods of time for you to settle your bills.
Instead, they want a kind of an instant payment.
So how do you manage to pay promptly for unexpected rising medical bills? It is quite tricky especially if you live from 'hand to mouth'.
Many of other bankruptcy cases are thought to be as a result of irresponsible spending habits but medical insolvency is a little bit different.
It is more common among people above 65 years old, since they are more prone to terminal illnesses that are expensive to treat.
Maybe you are wondering whether one can file for medical insolvency.
Beyond every reasonable doubt, the procedure for dealing with medical insolvency is no different from other forms of insolvency.
You can choose to file under chapter 7 or 13, depending on whether you have a regular source of income or not.
If on the other hand you have been sued by your creditors, you can go to court and file a petition exempting your valuable property from bankruptcy.
This way, you and your creditor can come into an agreement on how the bill will be settled.