Running a business can be a difficult thing, and many businesses face financial troubles at one time or another. Even businesses that some might think are immune to financial pressures can end up in financial trouble.
Some might think that being a doctor can make you immune from financial troubles, but even doctors sometimes need to seek bankruptcy protection. In fact, there has been an increase in chapter 11 bankruptcy filings by physicians recently. The economy, as well as regulations, malpractice insurance, and other costs of doing business, can combine to make it difficult for a physician's practice to survive.
One option for a struggling physician is chapter 11 bankruptcy. Using this method, it is possible to save a physician's practice. In one instance, as her solo practice was struggling, a doctor began to fall behind on state taxes. When the state tax officials came to shut down her clinic, the doctor called a bankruptcy attorney, who quickly filed for bankruptcy. As a result, the doctor's debts were restructured and her practice was saved.
So, financial troubles can affect anyone (even physicians), and one method of resolving the financial trouble is bankruptcy.
Source: CNNMoney, "Doctors Driven to Bankruptcy," Parija Kavilanz, April 8, 2013.