If you’re struggling with medical bills and considering bankruptcy, you’re not alone. A Maine Law Review states that up to 62% of bankruptcies include medical debt. The experts at Rulon T. Burton can assist you in filing for medical bankruptcy and getting your life back on track.
I Can’t Handle All My Medical Debt. What Are My Options?
Being saddled with medical debt can feel overwhelming and stressful. If you’re wondering what options are available to help manage the burden of unpaid medical bills, it’s important to note that there is no one-size-fits-all solution.
Managing your medical debt will require strategic planning and proactive communication with healthcare providers. Depending on financial hardship, you may be able to negotiate a payment plan or have the bill reduced or waived entirely. When necessary, repaying debt through personal loans may be an option too. Despite the initial challenges, by making smart decisions and maintaining consistent contact with your creditors it is possible to pay off medical debt over time in a way that works best for your individual needs.
What Are the Requirements for Filing for Medical Bankruptcy?
Filing medical bankruptcy can be a scary but necessary experience for some. After all, there’s only so much you can do with a mountain of unexpected medical bills. Fortunately, for those needing to file medical bankruptcy, the requirements are relatively straightforward.
- Compile a list of all debt
- Get a credit report
- Make a list of all assets
- Take credit counseling courses
- Fill out bankruptcy paperwork (medical bankruptcy can be filed under either Chapter 7 or Chapter 13 bankruptcy)
- Pay for the bankruptcy filing
- File bankruptcy paperwork in court
- Send financial documents to creditor(s)
- Complete bankruptcy courses
- Attend your 341 trustee meeting
How Do I Choose Between Chapter 7 and Chapter 13?
Both Chapter 7 and Chapter 13 bankruptcy will eliminate medical debt, but the differences between the two types of filings are important to consider.
Chapter 7: Also known as “liquidation” bankruptcy, this type of filing is best suited for those with limited incomes who do not have many assets they can use to repay their debts. Under a Chapter 7 bankruptcy, individuals must qualify under certain income requirements and be willing to surrender any non-exempt property in exchange for the discharged debt.
Chapter 13: This type of filing might be better for those with higher incomes or more assets since it does not involve liquidating any property. Instead, a repayment plan is created that allows debtors to pay back creditors over three to five years.
At Rulon T. Burton, our experienced bankruptcy attorneys can help you decide which type of filing is right for your situation and guide you through the medical bankruptcy process.
No matter how challenging your financial situation may be, taking control of your medical debt can provide much-needed relief from unmanageable bills. With the help of a qualified legal professional like those at Rulon T. Burton, you can get back on track and regain financial stability.
How Does a Lawyer Help with My Medical Bankruptcy Filing?
Filing for medical bankruptcy is complicated and often emotionally draining, but a lawyer can help guide you through the process. Lawyers are familiar with laws governing bankruptcy and can provide valuable advice on how to use existing mechanisms as a safety net for medical bills. They should also be able to explain any available options that you may not have known about, from tax credits to assistance programs. In addition to handling the paperwork involved in filing, an experienced attorney will also ensure that your rights are protected and that all deadlines are met. Working with a lawyer throughout this process doesn’t just make it easier; it can help reduce the stress of considering medical bankruptcy and prepare you for the journey ahead.
How Does Medical Bankruptcy Affect My Finances Long-Term?
Medical bankruptcy remains on your credit report for seven to ten years. Remember, however, that credit agencies don’t care what the reason is for your bankruptcy filing; medical debt vs credit card debt makes no difference to them.
Having a bankruptcy on your record may also make it more difficult to acquire loans, whether for a car, schooling, or a mortgage.
Let Us Help
Whether it’s medical bankruptcies or credit card debt, Rulon T. Burton can help.