Medical debt is a factor in nearly half of all bankruptcy filings in the United States, and it impacts people with and without medical insurance. The good news is filing for bankruptcy can help relieve many medical debts.
If your medical debt is the result of hospital or doctor’s bills, and you don't have any way of repaying, you may be eligible for a discharge under Chapter 7 bankruptcy. For people with a stable income, Chapter 13 can help you to reduce your debt and come up with a plan to repay the bills over three or five years.
Also, once you file for bankruptcy an “automatic stay” goes into effect. The stay prevents bill collectors from continuing efforts to collect debts, from furnishing negative credit information, or from attempting to seize assets like your car or home.
If you know you're not able to pay your medical bills, but need to keep seeing the same doctors, an attorney may be able to help gain control of your finances and prioritize payments. If your medical debt was a one-time expense, an attorney can help negotiate a realistic payment and determine if bankruptcy is your best option.
Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.