Why are doctors being driven to bankruptcy is a question that many physicians and patients are asking and concerned about. Indiana bankruptcy attorneys have seen an increase in the number of physicians coming to them for help. If you one of those hardworking physicians worried about money and having to file bankruptcy, you are not alone. The trend has been accelerating in recent years with many practices shutting down. Physician bankruptcy not only affects practices of many doctors, it also affects patients who end up with less choices of getting nearby healthcare.
Factors Contributing to Recent Physician Bankruptcy Trends
While you may think that malpractice filings are behind physician bankruptcy filings, you would be wrong. A combination of other factors can be attributed to the recent rise in bankruptcy among physicians. The weak economy has caused patients to cut back in doctor visits. Insurance companies and Medicare cutbacks have reduced reimbursements physicians receive. Medical malpractice costs have gone sky high with many specialty physicians such as OB-GYN’s having to self-insure in order to make ends meet. High prescription drug costs and business operating expenses and incremental changes in Obamacare have added to doctor’s woes making it more difficult to keep afloat.
Options to Help Physicians Get Out of Debt
There are alternatives if you seek help right away. By talking to an experienced Indiana bankruptcy attorney, you may be able save your practice and keep your doors open.
Physicians who are struggling may be able to keep their business assets and their practices by restructuring their debt and filing for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Filing for bankruptcy protection prevents your creditors from suing you and obtaining judgments against you.
Benefits of Chapter 11
Chapter 11 allows you to reorganize your business by reducing your debt with your creditors by agreeing to enter into a court-approved reorganization plan over a three to five year period. The good thing about Chapter 11 is it gives you time to come up with an effective business plan and reduce your debt at the same time. After you complete the plan, any unsecured business debts you may have are discharged by the Court. If you are looking for a second chance keep your practice and service your patients, Chapter 11 may be the right answer for you.
Indiana Bankruptcy Lawyers Assistance
If you are a physician facing financial difficulties, our Indiana bankruptcy lawyers at Walton Legal Services can help you sort out the best options for your business to get you out of debt. Whether you decide Chapter 11 bankruptcy is the right option for you or not, it is recommended that you speak with an Indiana bankruptcy attorney right away before you lose your practice and have to shut your doors.