A new study published by the American Journal of Medicine indicates that medical debt is the leading cause of personal bankruptcy. Hospitalizations, even short ones, can cost thousands if not hundreds of thousands of dollars. Without health insurance a person most likely will not be able to afford payment of the medical bills. Often times a person will seek to file bankruptcy due to mounting medical bills. In fact some studies show that 60% of bankruptcy filings are due to medical bills. Of course one option is contacting the physician or health care institution and arranging some affordable repayment plan. The creditor (physician or health care institution) may or may not be amenable to such an arrangement. Another option is to file for bankruptcy. Filing a Chapter 7 bankruptcy would wipe out all unsecured debt including medical debt.