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New Jersey bankruptcy: Recession hits doctors, too

| Apr 24, 2013 | Personal Bankruptcy |

Most people in New Jersey have been affected in some way by the recession. Doctors are no exception. With fewer people going to the doctor in order to save money, there are several doctors whose practices are in jeopardy. This has caused many doctors to file for bankruptcy protection as a responsible means of dealing with their debt.

When a downturn in patient visits is added to the ever increasing cost of everything from medications, equipment and malpractice insurance, it can be a potential disaster for some doctors. For instance, an oncologist began struggling to keep his practice open when medications and treatments for his cancer patients were no longer being reimbursed at the same levels. He filed for bankruptcy protection and closed his practice.

Specialists aren’t the only doctors with financial struggles these days. Family doctors and other general practitioners are also having financial difficulties. One primary care physician got behind on her tax payments, and the state came to shut her down. She contacted an attorney while the state officials were still in her office to file a bankruptcy on her behalf. Her clinic stayed open that day, and she was able to turn things around.

However, there are many more doctors that aren’t able to turn things around and are forced to close their doors. Filing for bankruptcy protection has helped many doctors start over financially, even if they are no longer able to run their own office. As with anyone else in New Jersey that files for bankruptcy protection, doctors can also be given the room to deal with their financial situation and begin again.

Source: Kiiitv3.com, “Doctors Driven to Bankruptcy,” April 8, 2013

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