Unfortunately, there are millions of Americans who are struggling to pay their bills today because they’ve accumulated too much medical debt unexpectedly. Nobody can prevent major health issues from happening or predict when they will occur. When they do arise you simply need to figure out a way to get the treatment you need, even if it’s something you can’t afford. While this will help ensure that your medical issue will be resolved quickly it can leave you in a situation where things suddenly spiral out of control before you even realize it. If you’ve found yourself in this type of situation and now you’re searching for some help, you should know that bankruptcy may potentially be the solution.
Understanding Medical Debt
Medical debt is the leading cause of bankruptcy in America today. Unfortunately, there’s the common misconception here that people who’ve experienced financial challenges have done so because they’ve mismanaged the funds in other areas of their life. However, according to USA Today, this isn’t true. In fact, since the start of the pandemic medical debt has been on the rise. Another study also indicates that about 25% of this debt is caused by things like hospitalizations. Some of the other areas that have contributed to such debt include diagnostic tests (e.g. X-rays, MRIs, lab fees – 22%), emergency room visits (19%), and doctor visits (15%).
How Bankruptcy Helps with Medical Debt
Through the legal proceedings of bankruptcy, a debtor can receive financial relief from certain debts. Although this isn’t specifically structured in such a way as to help you with your medical debt these debts do fall under the category of “unsecured debts.” These are debts that aren’t tied to any assets or collateral. So when someone tells you that they filed for a medical liquidation what they’ve really filed for is either a Chapter 7 or a Chapter 13.
When you qualify to file for a Chapter 7 it’s possible to have any debts related to medical services discharged. This means that they’d be wiped clean so you’re no longer held legally responsible for them.
Sometimes a Chapter 7 isn’t an option and you’ll need to file for a Chapter 13 but even then you may be able to get some help for debts related to medical services you’ve received. With Chapter 13 your debts will be restructured in such a way that their payments become more manageable so that you’re able to pay them over a set period of time. Once you reach the end of this time period, any remaining debt will then be discharged.
End Your Struggles with Medical Debt Today
If you find yourself struggling under a mountain of medical bills you should call upon Jay Weller Legal Group of Tampa in Tampa, FL. They can help you look at your personal circumstances and see what options are available to you. You can also have all your answers about bankruptcy simply by engaging in a free consultation with them today.
Picture Credit: Freepik
