By Hampton & Pigott
Posted on 1-5-2022
Medical problems usually occur unexpectedly. Hopefully you have an emergency fund set aside for situations like this, but not everyone has the circumstances to do that. If you do not have an emergency fund to draw from to cover medical expenses, credit cards are often used to front the bill. If you struggle to pay off those debts, fees and interest can pile up, making medical bills even more burdensome.
If that situation sounds all too familiar to you, we feel for you. But what can you do when you feel like you are drowning in medical debt? Relief can come by filing for bankruptcy. Allow us to explain how.
First, you need to understand the nature of medical debt. Medical debt is categorized as unsecured debt. This basically means that there is no tangible collateral behind medical debt.
Secured debts, on the other hand, are debts that have collateral. They are things like house and car loans. If a debtor cannot pay back the lender, the lender can seize the property. The lenders are secured because they can get their money back.
With unsecured debts, however, creditors are not able to get their money back in this way. When you receive medical services, there is no tangible object that can be returned to the creditor.
There are several bankruptcy filing routes you can take to wipe away or decrease unsecured medical debts.
One option is to file Chapter 7. Doing this will absolve all of your medical debt. There is no repayment plan along with filing this way and there is no dollar limit on how much debt relief you can get.
Another option is filing Chapter 13. The difference here is that unlike Chapter 7, there is a debt limit and filing this way will require a repayment plan. With Chapter 13 filings, all your debt will be lumped together and a good majority of it will be dismissed. Then based on your income, bills, and expenses a repayment plan will be created for you to pay off the remainder of your debts. The percentage of debt that you will need to repay will vary from person to person based on numerous financial factors.
Getting free from the burdens of medical debt can be difficult. Filing for bankruptcy can help. If you are not sure if this is the step that you need to take or you are not sure what you should file under, contact our financial attorneys at Hampton & Pigott today. We can guide you towards the decision that makes the most sense for you. Let us help you get back on your feet.
Recent:
Categories
Archive
Sep 2024
Aug 2024
Jul 2024
Jun 2024
May 2024
Apr 2024
Mar 2024
Feb 2024
Jan 2024
Dec 2023
Nov 2023
Oct 2023
Sep 2023
Aug 2023
Jul 2023
Jun 2023
May 2023
Apr 2023
Mar 2023
Feb 2023
Jan 2023
Dec 2022
Nov 2022
Oct 2022
Sep 2022
Aug 2022
Jul 2022
Jun 2022
May 2022
Apr 2022
Mar 2022
Feb 2022
Jan 2022
Dec 2021
Nov 2021
Oct 2021
Sep 2021
Aug 2021
Jul 2021
Jun 2021
May 2021
Apr 2021
Mar 2021
Feb 2021
Jan 2021
Dec 2020
Nov 2020
Oct 2020
Sep 2020
Aug 2020
Jul 2020
Jun 2020
May 2020
Apr 2020
Mar 2020
Feb 2020
Jan 2020
Dec 2019
Dec 2018
Jul 2018
Dec 2017
Oct 2017
Jul 2017
Feb 2015
Jun 2014
Jan 2014