It is wise to speak with a bankruptcy lawyer for people with a large amount of medical debt. Medical debt is a serious problem in the U.S. and one of the common reasons that people file bankruptcy in the first place. Even with insurance, it is easy to accrue a large amount of medical debt in cases of serious disease or emergency. Whether the medical bills are $20,000 or $200,000 does not matter if one is unable to pay them. If so, bankruptcy may be the only option for getting out of this financial situation.
Should I delay my bankruptcy to include all medical bills?
Yes, if you want to include them in your bankruptcy. As a bankruptcy lawyer, we sit down with clients and go over all options. When you file for bankruptcy, you can request that debts are wiped out or put into an affordable repayment plan. Any debts that you accrue in the future, including medical bills, will not be discharged in bankruptcy. With that in mind, it is wise to reach a level of stability before you file for bankruptcy.
This might be possible if you have fully recovered or if your medical bills are related to a medical emergency that was resolved. However, filing too soon could put you in more financial difficulty if you are still undergoing medical treatments for something like cancer. Bankruptcy is something that you cannot file for repeatedly and you will have to wait several years before you file again.
However, a bankruptcy lawyer has tools to stop collection calls or threats made against you due to an inability to pay. As bankruptcy lawyers, we have tools to hold creditors off temporarily while you complete your treatments. We will discuss all of these things during your consultation.
Types of Bankruptcy Filings with Medical Bills
You must talk to a bankruptcy attorney regarding the different types if you are thinking about filing due to extensive medical bills. There are two common types of bankruptcy. Chapter 7 is a liquidation bankruptcy where all your unsecured debts are wiped out. However, keep in mind that your assets might be liquidated to pay towards your creditors.
Therefore, if you have money in your savings account, it is possible that the trustee will direct that money towards paying your debts. There are ways to protect your property. During your consultation, we will review your assets and let you know what may be liquidated and what is safe.
The other type of bankruptcy is a reorganization bankruptcy or Chapter 13. This is where all your debts are put into a payment plan that is affordable. Over a period of several years, you will make a single payment to the trustee. The trustee will disperse that money among your creditors. Once that time is over, any remaining unsecured debts will be eliminated. However, any new debts that you accrued during that repayment period will not be part of the bankruptcy.
If you have extensive medical bills, call our office and speak with a bankruptcy lawyer today.
NOTE: This is for informational purposes only and does not constitute legal advice