It’s no secret that America has a serious problem with medical debt, and the pandemic has only made things worse. A recent survey by LendingTree found that 60% of Americans face medical debt, with 53% saying the debt is greater than $5,000 and 72% saying it prevents them from pursuing life milestones, like buying a home or having a child. As a Memphis bankruptcy lawyer TN trusts, I see first hand the toll an unexpected medical emergency can take on families. Just when you should be able to focus on getting better, you have to focus on making ends meet instead. Thankfully, there’s a way out.
Bankruptcy offers lasting relief from medical debt.
If you have significant medical debt you may be considering different strategies to get out of it. Many people negotiate their debt, and if this option is open to you, by all means do it. You should always verify that every bill is correct, and that you’ve received all the services you’re being billed for.
But some other options, like taking out a personal loan, are the equivalent of putting a band-aid over a much larger problem. I often say that serious debt, including medical debt, will not resolve itself. Bankruptcy is the concrete resolution you are looking for. It was designed to offer folks a way out in exactly these situations.
Bankruptcy can free you from medical debt, including:
- Hospital bills
- Physical therapy costs
- Long-term care
Filing for bankruptcy to wipe out medical debt is more common than you may think. In fact, medical debt is a top reason people file for bankruptcy. For individuals, there are two main types of bankruptcy: Chapter 7 and Chapter 13. Each type works differently, but both offer lasting relief from unpaid medical bills.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy is a simple, fast way to clear your slate and move forward with your life. It can completely wipe out your unsecured debts, including medical bills, taxes, and credit card bills.
Chapter 13 Bankruptcy
Another option is a Chapter 13 bankruptcy. It combines your debts into one affordable monthly payment, usually spread out over 3 – 5 years. Many people who file for a Chapter 13 bankruptcy because of unpaid medical bills only end up paying for a portion of the total debt.
Contact a Memphis bankruptcy lawyer TN trusts today for a FREE consultation.
If you are ready to lift the burden of medical debt from your shoulders, our experienced bankruptcy lawyers can help. Contact us online or call (901) 327-2100 to find out more about your bankruptcy options for FREE. We will discuss your medical bills and other debt and make a plan that works for you.
We’ve stood by thousands of families as they’ve rebuilt financially, and we will stand by you too. Give us a call today to hear how we can help.