Medical bills are a very common reason people file for bankruptcy. For those who cannot pay their medical bills and do not file for bankruptcy, their situation likely will worsen.
If you are unable to pay medical bills, you’ll start getting late-payment notifications, and late fees will accrue. The medical provider may sue you in the future and win a monetary judgment against you, or it could also result in wage garnishment, a bank levy, or the placing of a lien against your non-exempt property.
If you can’t pay the bill and it appears that the creditor will pursue you for payment, your good credit will suffer since a collection action will appear on your credit report. If they sue you and win the case, the medical provider could garnish your bank account or pursue other collection measures. When it comes to bankruptcy, filing as soon as possible could help you get back on your feet financially faster.
For those with modest incomes, and assets with little or no equity, Chapter 7 bankruptcy is a great option. There is no requirement for you to have a specific amount of debt. You can apply for Chapter 7 bankruptcy if you owe a single large amount. It is possible to wipe away medical bills and most other unsecured debts in a Chapter 7 bankruptcy.
If you are not eligible for Chapter 7 bankruptcy, you can apply for Chapter 13. In Chapter 13, you’ll use your repayment plan to pay back part of your medical debt based on what you can afford. At the end of the case, the court will discharge your remaining unsecured debt, even if unpaid.
Are you considering bankruptcy due to medical bills? Consult with an experienced lawyer to find out the best course of action for you. Acker Warren P.C has the experience to provide you with answers related to bankruptcy.