Medical Bill Consolidation - Total Bankruptcy
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Medical Bill Consolidation

In the traditional sense of the phrase, consolidating medical bills simply allows a debtor to combine their bills into a single payment. This method may still require people in debt to pay the entire amount they owe.

Filing bankruptcy, on the other hand, may be a more effective strategy to restructure a new payment plan or eliminate medical debts altogether, depending on your circumstances. Both Chapter 7 and Chapter 13 offer unique methods of debt relief.

Eliminating Medical Debt Through Chapter 7

Chapter 7 bankruptcy, which is designed for people with limited income and few assets, may eliminate some or all of a person's unsecured debts.

Conveniently, doctor and hospital debt is considered unsecured. As a result, filing Chapter 7 may allow a filer to discharge their medical bills in as little as four to six months.

Before filing bankruptcy, however, people sometimes consider these options:

  • Negotiate with the hospital. Your hospital or doctor may be willing to negotiate for a lower payment if you are candid about your ability (or inability) to pay your bills.
  • Pay a lump sum. Healthcare providers may be willing to provide a discount if you can pay a single lump sum.
  • Communicate with insurers. Insurance companies are often very slow to compensate people for their claims. Make sure you are being treated fairly and that you are only paying what you rightfully owe.

If these methods prove unhelpful, Chapter 7 bankruptcy may be an excellent form of medical debt relief.

Consolidate Medical Bills in Chapter 13

By filing Chapter 13, a person can consolidate their debts into a single payment plan. Here's how the Chapter 13 bankruptcy process works:

  • First, the bankruptcy court works with the filer to create a new payment plan. The filer makes monthly payments to a trustee, who distributes money to all the necessary creditors.
  • This process lasts three to five years and may allow a filer to completely catch up on their debts.
  • If, at the end of this process, a filer has made consistent payments, the bankruptcy court may discharge other unsecured debts, including medical bills.

Medical bills can cripple a person's financial health. Don't let skyrocketing health costs sink your finances. Connect with a local bankruptcy lawyer today to discuss whether bankruptcy could be the right solution to help you deal with your medical bills.

You can set up a free consultation with a local lawyer by filling out the brief information form below.

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