It’s no secret that the cost of medical care in the United States is very high. Unfortunately for many, one unexpected trip to the hospital is enough to put them into deep debt. If this reflects your circumstances, you’ll want to keep reading to explore how filing for bankruptcy may be able to help clear some of your medical debts. Additionally, you’ll discover how a Memphis, TN medical debt lawyer can guide you through this process to achieve some financial relief during these upsetting times.
How Are Medical Debts Handled During Bankruptcy?
If you are considering filing for bankruptcy to help eliminate certain debts, understanding whether or not your medical debt can be erased is critical. As such, it’s necessary to know the difference between a dischargeable and non-dischargeable debt.
Generally, a dischargeable debt is one that can be forgiven during the bankruptcy process. When a debt is discharged, it is essentially forgiven. As such, you are no longer legally obligated to pay for the debt and collectors cannot pursue them. On the other hand, a non-dischargeable debt remains your responsibility after the bankruptcy process ends.
In general, medical debt is dischargeable, meaning it will be forgiven upon the completion of your bankruptcy filing.
What Else Should I Know?
It’s important to familiarize yourself with how bankruptcy works if seeking relief during this process. As a consumer, you generally have two options to file for bankruptcy – Chapter 7 or Chapter 13. Chapter 7 bankruptcy involves the liquidation of your non-secure assets to pay off debts. This means the trustee assigned to your case will sell your assets to pay off creditors. This process generally only lasts six months and, in the end, all eligible debts will be discharged. However, you should know that only certain individuals will qualify for this option.
Those who do not qualify for Chapter 7 must pursue Chapter 13. This involves the reorganization of your assets into a repayment plan that will last three to five years. Upon the completion of your repayment plan, eligible debts will be forgiven.
Do I Need the Help of a Memphis Attorney?
If you are in medical debt and have explored other debt-relief options, bankruptcy may be in your best interest. In general, you should not try to file for bankruptcy on your own, as this process is incredibly complex and overwhelming for many. One of the most common mistakes people make when filing is leaving out all of their debts, which can result in you being held responsible for a debt that could have been forgiven. Additionally, if you fail to list all your assets or make other errors, your case may be dismissed.
Instead, letting an experienced attorney guide you through this complex process is crucial to protecting you and ensuring you can reap the full benefits of filing for bankruptcy. At the Arnold Law Firm, we understand how terrifying it can be to deal with medical issues and debt at the same time, which is why we are dedicated to fighting for you during these matters. Connect with us today to learn how we can fight for you.
