If you have been in an accident, suffered a serious illness or had to spend time in a hospital, you know how quickly medical bills can accumulate – even if you have medical insurance! Medical bills are even more devastating if you do not have insurance. In fact, overwhelming medical debt is a common cause of personal bankruptcy filings in our country. If you are facing medical bills that you cannot afford, filing a Chapter 7 or Chapter 13 bankruptcy may be the answer.
Most medical bills are unsecured, which means there is no asset pledged as collateral to the lender. If you file a Chapter 7 case, most of your unsecured debt will be discharged or cancelled. For an individual that has had an extensive hospital stay or needed costly treatments, it can mean you are no longer obligated to pay thousands of dollars!
If you file a Chapter 13, your medical bills will be treated as unsecured debt under your repayment plan. The Chapter 13 plan outlines how you will your creditors, in whole or in part. Most repayment plans pay unsecured creditors pennies on the dollar owed, if anything at all. As a result, you will pay a very small percentage of the thousands of dollars you owe in medical debt.
If you are tired of worrying how you will pay your medical bills while you are still focusing on getting healthy, we can help. Let us review your individual finances and help you understand all of your legal options, including how your debt will be treated in a personal bankruptcy filing.
The personal bankruptcy process can be simple and effortless if you retain an attorney who will explain the steps to you. Ms. Anderson is dedicated to walking you through each step, explaining the process along the way. At The Law Office of Diane Anderson, we are determined to help our clients obtain the best results possible.