According to the American Journey of Public Health1, two thirds of people who file for bankruptcy cite medical issues as a key contributor to their need to file. An estimated 530,000 families turn to bankruptcy each year because of medical issues and bills.
When people fall behind on the mounting bills from healthcare, many file for bankruptcy. Filing for bankruptcy is a difficult decision and the process can be challenging. David is here to guide you through your options and to help you determine if bankruptcy is the right course of action for your circumstances.
Can You Clear Medical Debt in Bankruptcy?
Yes, you can eliminate, or discharge most all eligible medical debts if you declare Chapter 7. If you are not eligible for a Chapter 7, you may be able to eliminate some percentage of your medical debts if you declare Chapter 13. Chapter 13 requires a repayment plan that is based on your income and assets. The higher our income and assets the more debt you may be required to repay. The lower our income and assets the less debt you may be required to repay.
Filing Chapter 7 for Medical Debt
Chapter 7 will discharge all medical debt. There is no dollar limit on how much debt relief you can get for medical costs and medical care put on credit cards. There is also no repayment plan to pay back any of these debts. Not all people will qualify for Chapter 7 bankruptcy, so it is important that you consult with an experienced attorney to determine if you are eligible.
Filing Chapter 13 for Medical Debt
Filing Chapter 13 will combine all of your bills and debt together, but you will still need to pay back some of the overall debt back. The repayment plan will be created based on your income, bills, equity, assets, and other expenses.
Unlike Chapter 7, a Chapter 13 bankruptcy has debt limits. Debt limits change every few years, so it is important to consult an experienced attorney to determine eligibility.
Determining What Is Right For You
Declaring bankruptcy can also help you to discharge (Chapter 7) or repay (Chapter13) other debts including credit card debt, utility balances, back rent or lease payments, personal and payday loans and more. Not all obligations can be erased in bankruptcy, so it is important to understand your options.
David Gaffney is offering a FREE consultation so that you can thoroughly understand your options. I will personally take your call to explain the bankruptcy process and costs so you can make an informed decision for your future. You are not hiring me with this call. You are simply learning more about your options. Our discussion will be fully confidential.