If you are currently receiving medical benefits through the federal Medicaid program and have bad credit, you may be wondering what steps you can take to reduce your debt.
Personal bankruptcy may offer you an opportunity to reduce your overall debt while still maintaining access to your Medicaid benefits.
Speaking with a local bankruptcy attorney may help answer your questions about how filing affects Medicaid and how it may be used as a fresh start to rebuild bad credit.
To get specific answers about your needs, speak with a local bankruptcy lawyer. Complete the free form on this page and we'll connect you right away with a bankruptcy attorney near you for a free case evaluation.
If you receive Medicaid benefits, you may be concerned about bankruptcy's effect on Medicaid.
Chapter 7 bankruptcy may an option for those who receive Medicaid benefits but wish to file for bankruptcy, since it usually provides:
If you file for bankruptcy, make sure to tell your attorney that you are currently receiving Medicaid benefits. This will allow your attorney to help you make decisions to protect your Medicaid and work on attacking the sources of your bad credit.
A bankruptcy will appear on your credit report for up to 10 years, but the elimination of some or all of your debts may allow you the financial breathing room you need to begin to rebuild your credit.
In fact, many filers' credit is so bad before bankruptcy that they have nowhere to go but up. In your effort to improve your credit, solving your debt problems is a crucial step towards regaining financial health.
By filing for Chapter 7, the most common form of personal bankruptcy, you may be able to eliminate:
By releasing these forms of debt, you may be able to catch up on other bills and start to rebuild your bad credit. If you make sound financial decisions after your bankruptcy, and keep a close eye on your budget, your credit problems may be resolved.
To learn more about the relationship between Medicaid, bad credit, and bankruptcy, contact a local bankruptcy lawyer today.