As a medical debt attorney TN trusts, I know the toll an unexpected medical emergency can take on a family. A major medical treatment can leave people with substantial debt, even if they have insurance. In fact over 60% of Americans are in medical debt. With many people having to choose between paying down their medical debt or paying for necessities like rent and car insurance.
No one should have to risk their health or lose everything over medical costs. Even small amounts of medical debt can hinder economic security, feed debt cycles, and reduce access to jobs and housing. Thankfully, there’s a way out of the medical debt spiral with the power of bankruptcy.
Medical debt is the number one reason Americans file for bankruptcy
It’s a common assumption that people who file for bankruptcy are irresponsible with their money. That they got themselves into significant debt due to careless spending. The reality is that nearly 67% of all bankruptcies are tied to medical issues.
Many Americans who face an unexpected medical emergency don’t have the cash available to pay for all of the medical expenses. So, in an effort to try and cover those medical bills, folks turn to credit cards or payday loans. Unfortunately, this only lands them in more debt.
Can bankruptcy wipe out medical debt?
Yes, you can eliminate or discharge most medical debt if you declare Chapter 7 or Chapter 13 bankruptcy. It is truly one of the best ways to wipe out medical debt and build a better financial future.
Filing Chapter 7 for medical debt
A Chapter 7 bankruptcy can get rid of all medical debt and credit card debt. So this option might be the best fit for you if you paid for healthcare costs with credit cards.
Thankfully, there is no dollar limit on how much debt relief you can get for medical costs and medical care put on credit cards. There is also no repayment plan to pay back any of these debts.
Filing Chapter 13 for medical debt
A Chapter 13 bankruptcy combines your medical and other debt into one affordable monthly payment, usually spread out over 3 – 5 years. Also, many people who file for a Chapter 13 bankruptcy because of unpaid medical bills usually only end up paying for a portion of their total debt.
An experienced medical debt attorney TN trusts can help you determine which type of bankruptcy is best for you.
Schedule a FREE consultation with a medical debt attorney TN trusts.
If you are ready to free yourself from medical debt, our compassionate and experienced medical debt attorneys are here to help. Call (901) 327-2100 or contact us online to schedule a free consultation – no strings attached. We’ll talk through your specific situation, review your medical bills and other debt, and help you make a plan that works for you and your family.
We’ve helped thousands of clients rebuild financially, and we can do the same for you. Give us a call today to get started.