Can I File for Bankruptcy for Medical Bills?
Are you a resident of New York State that’s struggling to pay off medical bills? You may be able to find relief through bankruptcy. Depending on your unique situation, you may qualify for Chapter 7 or Chapter 13 bankruptcy, which is a solution offered by the United States Bankruptcy Code.
At Ursulova Law Offices, we can help guide you through filing bankruptcy on medical bills. You don’t want to try and navigate this process on your own since the laws surrounding medical bills bankruptcy can be very complex.
Chapter 7 Bankruptcy for Medical Bills
Before you can file bankruptcy for medical bills, you need to understand the basics of Chapter 7 and Chapter 13 Bankruptcy.
When you file for Chapter 7 bankruptcy, it’ll allow you to discharge some of your medical debt, if not all. This means that you won’t be responsible for paying back the debt, which will be wiped from your record.
To meet eligibility requirements for Chapter 7 bankruptcy, you must meet certain income requirements and pass a means test.
It’s common for medical bills to cause extreme financial hardship, and if they’re not taken care of in a timely manner, they can ruin your credit score. Although filing for Chapter 7 bankruptcy will stick to your personal credit report for up to 10 years, it’s an effective way to eliminate overwhelming medical bills.
Some factors to consider with a chapter 7 bankruptcy include:
- Debtors may have to surrender nonexempt assets to the bankruptcy trustee
- It’ll remain on your personal credit report for up to 10 years
- A Chapter 7 bankruptcy filing may not discharge all debt owed
Chapter 13 Bankruptcy for Medical Bills
Chapter 13 bankruptcy is an interest-free debt repayment plan that’s available to those who are behind on their medical bills. You’ll make payments over a period of 3-5 years, depending on your income and the amount of debt you owe.
The main thing to know about the difference between Chapter 7 and Chapter 13 bankruptcy on medical bills is that with Chapter 7, your medical bills will be wiped away, while with Chapter 13, you’ll have to make a repayment plan.
With Chapter 13 bankruptcy, you should keep these factors in mind:
- You’ll have to make a repayment plan for 3-5 years, depending on your income and the amount of debt you owe
- Your filing will remain on your credit report for up to 7 years
- You may not be eligible for Chapter 13 if you have too much disposable income
Are There Ways To Navigate Medical Debt Without Filing Bankruptcy?
While filing for bankruptcy may be an ideal solution in some cases, it’s not always necessary. Depending on your financial situation, the amount of debt you owe, and the type of medical bills, there may be other options available.
Create a Payment Plan
One way to navigate medical debt without filing bankruptcy is to negotiate a payment plan directly with your creditor. This will require you to contact the creditor and explain your financial situation. They may be willing to accept a reduced payment or extend the length of time for repayment.
Apply for Assistance Programs
Another option is to look into government assistance programs. Many states have financial assistance programs for those struggling to pay off medical bills.
How a Brighton Beach Bankruptcy Attorney Can Help
If you’ve tried searching for a bankruptcy attorney and are considering filing for bankruptcy on medical bills, contact Ursulova Law Offices. Our experienced attorneys can assess your situation and help you determine if bankruptcy is the best option.
We understand that medical debt can be overwhelming and debilitating, and our attorneys are here to help you find a solution. We provide personalized legal advice and can help you understand your options. Give us a call today to discuss how we can assist you in navigating medical bills bankruptcy.
