The reason that people file for bankruptcy is to clear their unpaid bills, including medical debt. Bankruptcy can, in fact, zero out your medical debt. You may want to consider a few things before filing for bankruptcy to take care of medical bills.
Before Filing for Bankruptcy to Clear Medical Debt
Filing for bankruptcy should be a well-thought-out decision. Meeting with a bankruptcy lawyer will help you make sure you have thought of all alternatives to and the aftermath of filing for bankruptcy. Take a look at some questions that may provide you with more information:
· Will the Medical Ailment Require More Treatment? Bankruptcy is not something you can file for over and over again. If you have even more debt that will accumulate, wait until the medical condition has an end in sight before filing for bankruptcy to clear the bills.
· Have You Applied for Payment Assistance? Hospitals offer payment assistance for low-income individuals to help with medical bills. See first if you qualify for any of those programs.
· Do You Have Other Debts that Are Weighing You Down? If you have credit card debt and personal loans that have you underwater financially, bankruptcy to clear medical debt can also take care of those debts. If you are going to file for bankruptcy, it is best to set yourself up for success by clearing all debts. Then you can build back starting with a clean slate.
· Does Your Debt-to-Income Ratio Qualify You for Chapter 7 Bankruptcy? If your income is low enough to qualify for Chapter 7 Bankruptcy, then your medical bills can be cleared in total. For a higher income, Chapter 13 Bankruptcy may be more suitable. A bankruptcy lawyer will know more to help you determine which type of bankruptcy is right for you.
Filing for bankruptcy isn’t always the best option when it comes to debilitating medical debt. Make sure you have exhausted all other alternatives and discussed them with your lawyer.
Please contact Miles & Hatcher, LLP, to answer any bankruptcy questions you might have. Our team is experienced with bankruptcy and can help you decide which option is the best for your situation. Please call today and set up your free consultation: (909) 481-4080.
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