Unpaid Medical Debt and Bankruptcy
Is it possible to file for bankruptcy for unpaid medical debt?
If you feel like you are drowning in medical debt, it is possible to seek relief by filing for bankruptcy. After all other options have been exhausted and medical bill collectors call you, schedule an appointment to learn more about your options with a bankruptcy attorney in Brooklyn.
Should I file for bankruptcy if I have medical debt?
Having medical debt add up can be overwhelming, and it might be very intriguing to consider having all that debt wiped out by filing bankruptcy. However, bankruptcy is not always the right solution for everyone. It might not be the right time to file, or an alternative solution may be available, including debt negotiation in Brooklyn.
Below are some things to consider when determining if you should file for bankruptcy to clear your medical debt:
- Could more debt pile up? Since debtors are only entitled to file for bankruptcy once every eight years (for Chapter 7) if you expect more bills to pile up, it might be best to wait until all other debts are done piling up.
- Are you judgment proof? Some people with no income or property have nothing for the creditors to file to take away, meaning there is no need to file for bankruptcy.
- Is medical payment assistance available? Most hospitals understand paying hefty medical costs can be overwhelming and have programs to help patients pay for medical expenses.
Contact a Brooklyn unpaid medical debt attorney if you are unsure if your medical debt is worth filing bankruptcy. Your attorney can help determine if bankruptcy is the best option for you or if there are alternative means to help you with your medical debt.
Options under Chapter 7
Medical debt is treated differently under the different filing options under bankruptcy law. Chapter 7 will discharge and wipe out an unlimited amount of medical bills and any other dischargeable debt. To qualify, your disposable income must fall below a specific amount according to the Chapter 7 means test.
If you think you may qualify for Chapter 7 bankruptcy, speak with an attorney to discuss your financial situation, and take the means test.
Options under Chapter 13
Individuals who do not qualify for Chapter 7 bankruptcy may be eligible for a Chapter 13 repayment plan. This type of bankruptcy plan establishes a repayment plan, where debtors repay all or a portion of their debt over three to five years. However, specific income levels and debt limits for medical bills and other obligations may prevent some individuals from qualifying for Chapter 13.
Which one is best for me?
Determining if Chapter 7 or Chapter 13 is the best option for your medical bills and financial needs is a complex and personal question. Several factors may disqualify you from filing one or the other. Speak with a bankruptcy lawyer in Brooklyn to learn more about the different bankruptcy options and take a quick means test to determine which option is best for you.
How your attorney can help determine the best course of action
Having medical bills pile up is not something anyone wants to deal with. Luckily there are options available, including filing for Chapter 7 or Chapter 13 bankruptcy. However, which one is best for you? Brooklyn bankruptcy attorneys can help determine which option is best for your financial situation.
Once an option is chosen, your attorney will help gather all necessary documents, file your petition with the courts, and appear with you in court or at a trustee hearing. If you need legal advice, call the Ursulova Law Offices to speak with a Brooklyn medical debt attorney.