Medical debt is one of the main reasons that many people are persuaded to file for bankruptcy. While the oppressions of medical debt are serious, the relief of bankruptcy is wonderful! If you and your family are suffering under medical debt that is overwhelming, bankruptcy could be a wonderful alternative.
Discharging Medical Debt
You should know upfront that you can’t just file for bankruptcy based on medical debt. When you file for bankruptcy, you file for bankruptcy. Everything is included and all qualifying debts are covered. There is no picking and choosing.
Depending upon your financial situation, there are two general approaches you can take to filing for bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a form of dissolution. That is to say, some of your assets are seized and sold in order to try and repay your lenders. If you are in way over your head, Chapter 7 is a great way to get a clean slate.
Under Chapter 13, you retain your assets, and you take advantage of the bankruptcy process to find a suitable way to repay your creditors. Your loans can undergo some serious restructuring so that repayment is more feasible. If you have an income (but it isn’t enough to pay off your debts as they currently stand), Chapter 13 is a great way to handle your current situation while retaining your assets.
Medical debt may seem like the end of the world, but it doesn’t have to be! Filing for bankruptcy can be a terrific way out! Contact us to see how we can help you work out your situation.