Medical debt is the top reason that people file for bankruptcy. When a person files for bankruptcy, their debt is put into one of two categories: dischargeable and non-dischargeable. While you may not be able to get rid of debts like student loans when you file for bankruptcy, you can eliminate your medical bills.
How to use Bankruptcy to Eliminate Medical Bills
You have the option of getting rid of medical bills with Chapter 7 or Chapter 13 bankruptcy.
You can get rid of all your medical debt with Chapter 7 bankruptcy. There is no maximum limit placed on the amount of debt that you have. However, your disposable income will determine whether or not you qualify for Chapter 7 bankruptcy. If you used your credit card to pay for your medical bills, then you will also be able to get rid of that debt.
Chapter 13 bankruptcy allows you to pay your medical bills back over the course of three to five years. Your expenses and income will determine whether you qualify. Keep in mind that there is a limit set on how much debt you can have.
Before You File for Bankruptcy
Even though bankruptcy can get rid of your medical debt, there are things that you will need to keep in mind.
Filing for bankruptcy is not a quick process. If you file for Chapter 7, it can take four to six months to go into effect. It will also remain on your credit and public records for the next ten years. Chapter 13 bankruptcy stays on your record for seven years, because you’re paying off a portion of the debt.
Having your credit affected by bankruptcy is no joke and something you should consider before taking the final steps. The best thing to do is consult with an experienced bankruptcy lawyer. Only a legal professional who knows the system inside and out can look at your specific case and provide you with credible advice. At the very least, your lawyer will be able to lay out the pros and cons, so that you can make the decision that is most beneficial for you.
The seasoned Louisiana bankruptcy attorneys at E. Orum Young Law Offices are here to help you improve your financial future. With over 20,000 cases filed, we’ve managed the most bankruptcies in Northeast Louisiana. Allow us to put over 35 years of experience to work for you. Contact us today at 318 450 3192 for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.
