Medical bills are one of the biggest and most tragic causes of debt in America. As a bankruptcy lawyer Memphis TN knows well for helping with medical debt, I’ve seen how devastating this problem can be. Families that need to focus on recovery can’t do so because they have to worry about where the money will come from. People are afraid to choose the best treatments because of the cost. And sick people have to do their best to heal with ongoing stress weighing them down.
In addition, medical debt comes with a lot of the same problems as any other debt. People who are sick and can’t pay their bills still run the risk of foreclosure, repossession, and wage garnishment. And they have less energy and time to deal with these problems. How can you expect someone suffering from cancer to find the best way to save their home at the same time?
So if you’re in trouble with medical debt you can’t pay, what options do you have?
Using Chapter 7 for Medical Debt
Through Chapter 7 bankruptcy, you can clear your debt all at once. It rids you of burdensome medical bills and is a helpful option for credit card bills as well. And it puts a stop to wage garnishment and any lawsuits over your debt. Chapter 7 works well for people who don’t need to hold on to certain assets, like their house or their car, or who aren’t at risk of foreclosure or repossession. It can give you a total fresh start – something a lot of people need as they recover from expensive and difficult medical procedures.
Using Chapter 13 for Medical Debt
Chapter 13 allows people with important assets to keep them. It stops foreclosure and repossession, and it also deals with your medical debt. Through Chapter 13, you set up a payment plan with the courts to help you pay off the debt at an amount that’s affordable to you. This is a great option for people who face astronomical medical debt and don’t want to move from the home they love as they recover.
Whatever option you need for your medical debt, find an experienced bankruptcy and insurance attorney to help. They will give you all of your options so you can make the best decision for yourself and your family.
Thanks to our friends and contributors from Darrell Castle & Associates, PLLC for their insight into bankruptcy.