"Bankruptcy of a Doctor"

Life After Bankruptcy Stories

People think that most doctors make a lot of money, so why would a professional need to go through bankruptcy?




Unfortunately, for me and my wife, it is because she cared too much for her patients.

When the state of Texas had difficulty meeting state budgets, they cut the budget for reimbursement to physicians. As a result my wife's practice was forced to close its doors and we were forced to go through bankruptcy.

Filing bankruptcy was one of the most humiliating ideas that either of us could ever envision. However, once we met with an attorney and discussed the situation it was clear that it was our only choice.

The process was very simple having to fill out several forms and pull together financial statements, bank records and other such papers. Our court date was set and we traveled the 60 miles to the nearest federal court building where our case was to be heard.

Several others were before us, and when the judge called our name we approached. We were asked for our Driver's Licenses and Social Security Cards. We were asked us to state our names and addresses for the record. The judge asked us if there had been any material change in the papers that we were filing with the courts and then asked if everything was true and accurate.

The judge then asked us what had happened, and I stated that the State of Texas had cut reimbursement rates to physicians which resulted in take home pay for my wife being reduced by over 50%.

He said, "Oh," looked at the papers, and said, "Approved".

The whole process took less than an hour with most of that time spent waiting to be called. Now that it's over, we realize it was the best decision we have ever made.

Our credit score took a 150+ point hit, but after 12 months with new credit cards (low limits) and the purchase of a vehicle we recovered about 100 points on our credit report. We are now 5 years post bankruptcy and the issue does not come up anymore.
Contributed by Kevin from Texas