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.
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:
If these methods prove unhelpful, Chapter 7 bankruptcy may be an excellent form of medical debt relief.
By filing Chapter 13, a person can consolidate their debts into a single payment plan. Here's how the Chapter 13 bankruptcy process works:
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.