| Critics of medical debt settlement point out that | | | | finances without having recourse something as |
| the whole concept of settlement of debt is not | | | | drastic as bankruptcy, one can be confident that |
| based on logic and common sense. To expect | | | | things are going on smoothly. |
| any individual or financial institution to offer a | | | | The recent recession saw a spate of |
| waiver ranging from fifty to seventy percent of | | | | bankruptcies that had not been witnessed in the |
| the original amount owed does not make sense. | | | | past few recessions. Further, this recession has |
| No person will give such a huge waiver and cause | | | | been, by far, the longest in recent memory. |
| such a huge loss. | | | | Considering all this, lenders are well and truly |
| This would have been true in the past before the | | | | scared of the chances of recovery of their debt. |
| recession hit the economy. However, this | | | | What is going to stop the borrower from simply |
| argument that does not hold any water today | | | | filing for bankruptcy? It is very pertinent to note |
| because America has been hit by one of its | | | | that number of bankruptcies as increased despite |
| worst recession in the past seventy years. There | | | | the two thousand five amendments has made it |
| are many who call this the worst recession after | | | | difficult for the average individual to opt for |
| the Great Depression and there are some who | | | | bankruptcy. |
| are of the opinion that this is even worse than | | | | Lenders have realized that it makes more sense |
| the Great Depression as well. | | | | to help the borrower out when he or she is facing |
| The primary reason why such a large number of | | | | a legitimate problem. It is possible to behave as if |
| persons are worried about this recession is the | | | | the problem of the borrower is the problem of |
| huge number of bankruptcies that took place. The | | | | the borrower alone. However, lenders have |
| number of bankruptcies can easily be used as the | | | | realized that their existence too is intertwined with |
| barometer to determine the condition of people in | | | | the regular repayment made by the borrower. In |
| the country. If a large number of persons are | | | | case of medical institutions, all these arguments |
| declaring bankruptcy, then something is wrong in | | | | are applicable. That is the reason why the service |
| the way finances are managed in the houses of | | | | providers are prepared to offer generous waivers |
| the country. On the other hand, if majority of | | | | as long as it helps them recover the funds |
| individuals are in a position to manage their | | | | properly. |