Medicare Chapter 7
If you receive Medicare benefits and are considering a Chapter 7 bankruptcy filing as a way of eliminating your debt, you’re probably wondering how Medicare works in Chapter 7 cases.
Fortunately, the Chapter 7 bankruptcy laws offer specific protections for many valuable assets, which may include your home, cars and even Medicare benefits.
For firm answers on the specifics of your situation and whether filing Chapter 7 or 13 may help you clear your debt and keep your Medicare, speak with a local Chapter 7 lawyer:
Medicare Benefits in Chapter 7 Bankruptcy
Some of the most pressing questions for many people concerned about Medicare and Chapter 7 bankruptcy are the following.
- What will happen to my Medicare benefits in a Chapter 7 bankruptcy? Chapter 7 exemptions may protect your Social Security benefits and public assistance benefits, including Medicare. You can ask a bankruptcy attorney about how these exemptions would apply to you.
- What if I need to file for Chapter 7 bankruptcy because of medical expenses? Medical expenses are a leading reason bankruptcy filers cite for needing relief from their debts. Receiving Medicare benefits does not disqualify a person from getting the protection of the bankruptcy court and having some or all of their debts discharged.
- What is “Medicare Chapter 7 bankruptcy?” Actually, while “medical bankruptcy” and other variations of that phrase are commonly used to describe a bankruptcy filing the only types of bankruptcy available are the different chapters. So even if medical bills are your main reason for filing, you may also be able to include credit card debt in your Chapter 7 case and have that cleared as well. Bankruptcy is designed to address multiple types of debt at once. People who file bankruptcy for medical reasons are eligible for the same protections as those who file for other reasons.
How Medicare Chapter 7 Works
If you decide to file for Chapter 7 bankruptcy protection to eliminate your medical debt, the bankruptcy process typically includes the following:
- You take the Chapter 7 means test. In order to qualify for the type of debt protection Chapter 7 offers, you must demonstrate to the court that your income falls under a certain limit.
- You complete and file your paperwork with the court. Because of the legal jargon included in many of the forms bankruptcy filers are expected to complete, many filers choose to work with a bankruptcy lawyer to make sure they don’t miss any deadlines or accidentally commit bankruptcy fraud.You must also complete a credit counseling course before you can officially file.
- Your trustee reviews your case: The courts and your creditors may look over your case. In certain instances they may make a challenge, but typically this is a smooth process. Afterward, you may take the debtor education course, which is required in order to officially close your case.
- You receive your discharge from the court. Assuming there are no hitches in your case and you have met all requirements, you could receive your Chapter 7 debt discharge in as few as four to six months.
Learn More about Medicare and Chapter 7 from a Bankruptcy Lawyer
If you’re ready to move forward with your finances and figure out the specifics of your situation, take advantage of this opportunity to connect with a bankruptcy lawyer today.