Medical Bills and Bankruptcy
Whether you are insured or not, the cost of healthcare can drain your finances, especially if you are dealing with a chronic illness or disability. It does not take long for out-of-pocket expenses (premiums, deductibles, co – pays, and the dreaded percentage not covered by insurance) to add up to medical bills bigger than what many Americans can afford to pay.
A 2014 study by the Consumer Financial Protection Bureau estimated that as many as 43 million Americans had some form of medical debt being reported on their credit report. The average reported medical debt was less than $1000, but millions of Americans reported medical debt more than $10,000.
If you are dealing with a chronic illness or disability, mounting medical bills are often accompanied by lessening or loss of work capability due to your medical issues, so paying off the medical debt seems overwhelming. It becomes just one more added stressor to your life.
However, there may be a way you can get relief from your medical debt.
Bankruptcy could be your solution.
It would depend on if you qualify for bankruptcy and which type of bankruptcy chapter you are able to file. There are means tests and income and debt limits that must be met in order to determine bankruptcy qualification, but if requirements are met your medical debt could be taken care of in the following ways:
Chapter 7 Bankruptcy – Medical debt could be completely discharged along with most other unsecured debts you have.
Chapter 13 Bankruptcy – Medical debt would be consolidated with most of your other debt and a repayment plan that you could afford would be defined for you.
If your medical bills are adding up to more than you can handle, it may be time to seek help. You have enough to manage and think about. Take action today. Contact us online or give us a call at 1-800-884-9600 and let us see if bankruptcy could be a solution for you. We would love to help ease your burden if we can.