Medical Bill Consolidation
If you’re struggling with overwhelming medical bills you’ve probably may be exploring your options for consolidating your bills and getting on with your life.
While medical bill consolidation may help you get your bills under control there are many tools available for those who want to get rid of increasing medical debt. Your options may include consolidation, bankruptcy, bill settlement and more. There are many options so you may want to seek professional advice on your case.
To get a free bankruptcy case evaluation, complete the form on this page and we'll connect you right away.
Will Medical Bill Consolidation Work for Me?
Here’s a look at medical bill consolidation versus other options for eliminating your medical debt.
- Medical bill consolidation: This generally involves taking out one loan for the amount of all of your medical debt. The benefit to consolidation is that you only have to make one payment per month for all of your debts. The down side is that most consolidation loans are secured, meaning that they require borrowers to put up some collateral (often a mortgage or car). This means that if you’re unable to make payments on your consolidation loan, you risk losing whatever property the loan is secured by.
- Medical bill settlement: Another option available to you is to attempt to settle your medical debts, which you can do with or without the help of a debt settlement firm. Essentially, settling your medical bills would involve contacting your creditors and offering to pay cash immediately for some amount less than the current total you owe (some sources suggest 75 percent of whatever your bill totals are). In order to do this, however, you'll need to save up enough cash to make a large payment. If your medical bills are significant enough to prohibit this option, though, it might not be viable for you.
- Chapter 7 bankruptcy: One option to eliminate medical debt is to file for Chapter 7 bankruptcy. This type of personal bankruptcy works by offering filers a full discharge of all their eligible unsecured debts, and the bankruptcy court considers medical bills eligible for discharge. If you file a Chapter 7 case, you may be able to clear all of your medical bills within as four to six months without having to repay them.
- Chapter 13 bankruptcy: Another option available is to file for Chapter 13bankruptcy, which allows filers to catch up on past due debts with the help of a three- to five-year repayment plan. The advantage of the repayment plan (compared to, for example, medical bill consolidation) is that you are under the protection of the court while you make payments, meaning that creditors cannot contact you for any debts during that time. Keep in mind, though, that missing a payment can jeopardize your chance at getting a bankruptcy discharge.
Learn More about Medical Bill Consolidation and Other Options from a Bankruptcy Lawyer
If you’re ready to take action to eliminate your medical bills speak with a local bankruptcy lawyer about all of your opens. You can take advantage of this opportunity by completing the form on this page to connect with a local attorney right away.