The high cost of healthcare costs causes a bankruptcy in the United States every 30 seconds. This comes as no surprise. Hospitals in this country expect patients to pay their debt as soon as they are up on their feet. In the 19th century, there are records of mothers who had to scrub the floors “within hours of delivery“. Leon Lederman, a Nobel Prize winner, had to sell his medal to pay his medical bills. Is filing for bankruptcy a solution? Here we discuss some legal advice on your options to find relief to this type of debt.
What is medical bankruptcy?
Medical bankruptcy as such does not exist. Nevertheless, a person may acquire a substantial medical debt and medical bills in many circumstances: accidents, long term illnesses, or Covid-19 hospital treatment. A credit card can help at the beginning, but in many cases, the medical debt keeps on growing. Then you might consider filing for bankruptcy as a way to deal with substantial medical debt.
When you file bankruptcy for medical bills, a court proceeding starts. Here a judge and court trustee examine your salary and your expenses, including your liabilities and assets. Then they decide if you can discharge your medical debt. This means they eliminate medical bills, and you no longer are financially responsible for paying that money.
Will all medical bills be paid in bankruptcy?
Take note that this financial proceeding can only include the medical debt before you start to file your case. Many people think that the medical expenses they incur afterward may be covered as well, but this is not the case. It includes the medical debt that accumulates while your case is under review.
How can I get my medical debt forgiven?
Having to face any kind of debt can make life difficult. Sometimes we reach the point of not being able to pay any more money. The credit card is no solution because the interest rates can kill any possibility of paying back. Some people reach the point of selling their property to relieve this debt. Yet this situation has a solution. Our attorneys are experts at helping you get out of medical debt.
There are several ways of doing this. First of all, you have to be persistent. Do not give up! We are here to help you. You can get free advice at our office with one of our attorneys. Call us before you decide to sell your property or charge the debt on your credit card.
First of all, we advise you not to put your medical debt on your credit card because it will become a high-cost debt. But before filing a bankruptcy, we will help you find out if your hospital has any financial assistance policy. We will also assist you to stop debt collectors from calling you. We can also find lower prices, so your medical debt gets a smaller figure. If all of this does not work, we can start thinking together about bankruptcy. We have hundreds of satisfied clients who have continued with their lives in calm, knowing their debt is being taken care of.
How to file for medical bankruptcy?
If the amount of medical bills you have to pay keeps growing, maybe it is time to start getting information about filing bankruptcy. We recommend you do not do open a bankruptcy case on your own. Get professional help, so you do not stand alone. Our law firm is an expert in this type of debt. Once you begin the attorney-client relationship, you will feel relief knowing your case is under professional care.
To begin a bankruptcy case, you will need to qualify for Chapter 7 or Chapter 13 bankruptcy. Take note that, even if medical bills are your primary reason for filing, you will need to list all your debts. It includes both secured and unsecured debts, including your credit cards. A bankruptcy attorney may help you put together this information, as well as help you file for Chapter 7 or 13. Our attorneys are experts at giving the judge an accurate representation of your whole financial situation for him to make a well-informed determination.
What is Chapter 7 bankruptcy?
To qualify to file this bankruptcy chapter, you must earn less than the state median income monthly. If you are in this group of people, with the help of our law firm, you will be able to submit to an examination of your financial records. A bankruptcy lawyer can guide you to get together all the paperwork for this examination, which must include both your income and your expenses. Then you have to include your secured debt (like real estate, car, and student loans) and your unsecured debt (like medical bills, credit card debt, and personal loans).
What is liquidation bankruptcy?
Chapter 7 bankruptcy is also known as liquidation bankruptcy. This type of bankruptcy is for people with a limited salary who cannot pay back their debt. If you file for Chapter 7 bankruptcy, the judge may determine you have to liquidate your available assets to help pay down your total debt. Take note that Chapter 7 bankruptcy may clear many other types of debts, as well as medical debts.
What is Chapter 13 bankruptcy?
Now, if you are considering qualifying for Chapter 13 bankruptcy, you must know it works as an extended repayment plan. One of our attorneys can help you present a Chapter 13 bankruptcy case if you have enough income for a repayment plan for your debts – or even part of them. Chapter 13 bankruptcy works as an alternative to liquidation.
To be eligible to file for Chapter 13 bankruptcy, an individual must have some money in the bank. The person may have no more than $394,725 in unsecured debt, like credit card debt or personal loans. They may have no more than $1,184,200 in secured debts, which include mortgages for property and car loans. These figures may adjust to reflect changes in the consumer price index.
If you get a repayment plan for Chapter 13 bankruptcy, you have to pay back your debts in a period from three to five years. We recommend you use professional help to create the best repayment plan for your needs. It will also depend if your income is above or below your state median. Check it on this website for free.
How do I know if I should file for Chapter 7 or Chapter 13 bankruptcy?
This question can best be answered by an attorney who is working on your case. Chapter 13 bankruptcy is the best option for people who have a steady income. In this option, the client’s most significant problem is dealing with creditors’ demands for immediate payment. It can be the case of dealing with a credit card debt, for example. Get free advice from our attorneys to help you deal with your creditors today.
What is a mean test in Chapter 7 bankruptcy?
To file a Chapter 7 bankruptcy, a person has to pass one means test. A means test is a way of knowing whether the debtor has enough money to pay back the debt or part of it, even if he does it through a repayment plan. Your average monthly income is compared against the state median income. After considering your living costs, the test gives information on your options if you have any disposable income left. If you do not pass this test, you can still be eligible for a Chapter 13 bankruptcy.
What are the consequences of filing for bankruptcy?
Filing for bankruptcy is not an easy decision. Working with an attorney may help to establish the best-case scenario for you. You can also get information on the consequences of filing bankruptcy.
Be aware that bankruptcy will affect your credit score. It will show on your credit report for up from 8 to 10 years afterward. It means it could be difficult for you to obtain credit cards, favorable interest rates, and other credit-related privileges. For example, it might take more time to open a new credit line to acquire a property.
After filing bankruptcy, hospital bills are covered. Your medical providers are also paid. Your health insurance plan and medical care should not be affected either. Nevertheless, your providers may be aware of the filing. In some cases, this means that some doctors may refuse to treat you in the future. Experience shows that most medical providers continue to give the same medical treatment to their patients as always because they understand their need for bankruptcy. If you see your medical provider inside a hospital or in an emergency, he cannot refuse to give you medical care.
Be aware that if you have a jointly held debt o asset, including any property, in your family, these will have to be listed. Otherwise, your family will not be affected by bankruptcy. Helping your family understand the need for bankruptcy and debt relief may be another reason to hire a bankruptcy attorney. The attorney-client relationship may include a free extra consultation where the attorney explains to the family members what happens when you file a bankruptcy. Family members can ask any questions regarding medical debt, disposable income, property, creditors and credit cards. For example, child support is a priority, so it is paid before any unsecured debt. You will still have to pay for the child support debt because it is not erased.
Our law firm is an expert in like cases, so we always provide our clients with helpful and time-tested tips on how to start rebuilding life, jobs, and credit scores after filing.
How do I file for bankruptcy if I have no money?
To file bankruptcy because you have no money is precisely the reason to do it. Any bankruptcy can provide you with much-needed debt relief. It may mean a clean slate to start to take control of your finances. The longer you wait to take control of your medical debt, the worse it can get. We provide our clients with a free initial consultation, so we can solve any doubts they have. We also guide them to think about a plan that may solve any secured and unsecured debts.
Should I file bankruptcy on my own?
You can but we recommend you do it with a lawyer. You can ask for a free consultation at our office. Rest assured that our firm is an expert to guide you in all the ways you can get rid of your medical debt and never acquire it again. Remember also that the government will require you to take two credit counseling courses. These credit courses give useful information on how to manage your credit moving forward. While medical bills are not a credit that can be misused, you will understand how not paying your debts can affect you in the future. These courses are no more than 60 minutes each and can be completed online or over the phone.