If you’re in a medical debt crisis, it may be time to enlist the aid of medical debt lawyers. How, exactly, can a lawyer help solve your debt crisis? A primary way is through personal bankruptcy.
Bankruptcy may help you eliminate some or all of your medical debts, including hospital bills, doctor’s demands for payments, and emergency medical costs. In addition, if you paid for prescriptions or other needs with a credit card, medical bankruptcy may clear those, too.
Don’t let medical debt sink your finances. By filling out the form below, you’ll secure a free, no-obligation case evaluation with a local bankruptcy lawyer. Your road to financial recovery starts today.
Hospital, doctor and medication debt is one of the most common financial headaches that prompt people to file for bankruptcy. After an illness or injury, quickly medical bills may pile up quickly, even if you have insurance. If you had to miss work, your finances may be in even more trouble.
As stated above, bankruptcy can have an extremely powerful effect on your medical debt. The two types of personal bankruptcy attack debt in different ways.
This type of bankruptcy is typically used by people who have limited income. By filing for Chapter 7 bankruptcy, you may be able to eliminate some or all of your unsecured debts without paying them back. These dischargeable debts may include:
So, not only can you potentially discharge medical debt through Chapter 7, you may also be able to eliminate other forms of debt that are causing problems in your life.
To learn whether you are eligible to file for Chapter 7 bankruptcy, consult the Chapter 7 means test. This "test" is just a brief evaluation of your income level to determine your Chapter 7 eligibility.
Another option is to file for Chapter 13 bankruptcy, which is typically used by people who have a steady source of income that allows them to make regular payments on a restructured debt plan.
Through this new payment plan, you’ll be able to settle your debts at a more reasonable pace. In addition, you may be able to:
This payment plan is secured by the court, and keeps creditors from harassing you during the process. If, at the end of your Chapter 13 payment plan, you have made progress on your debts, the bankruptcy court may decide to eliminate some or all of your unsecured debts, including costly medical bills.
In addition, another advantage of both Chapter 7 and Chapter 13 is the automatic stay, which prevents your medical creditors from bothering you during the bankruptcy process. This allows you a bit of breathing room while you get your finances in order.
Medical debt is rapidly growing in this country, and it is a very common reason for people to file bankruptcy.
If you’re looking to escape from the overbearing weight of medical bills, contacting a medical debt lawyer may help you get the information you need to make an informed decision.