There are many reasons why someone would want to get rid of their medical debts. In the current health crisis, thousands of people all across the country have taken a huge hit due to long hospital stays, procedures, and treatments. With all of these unexpected circumstances and payments, making sure you get out unscathed is extremely difficult. Below you’ll find a guide as to how filing for bankruptcy can help relieve you of these burdens.
Bankruptcy and Medical Debt
When many people think of bankruptcy, the common assumption is that it’s typically meant for those struggling to pay off credit card bills or business debts. As a matter of fact, bankruptcy can help relieve a multitude of debts, with medical debt being just one example.
If you are struggling to pay off your medical debts and would like to take advantage of the benefits of bankruptcy, there isn’t a special type to file under. The decision would simply be between Chapters 7 and 13, and which one would make the most sense for your specific case.
Our team would analyze your finances, outstanding bills, and of course, your debts, to provide our experienced opinion on what route to take and help you come up with the best plan of action.
Understanding Debt Categories
There are four categories of debt that are considered during the bankruptcy process in order to determine what can/cannot be discharged and how they should be treated in the process:
- Secured debts: debts that are backed by property you own, such as car loans, which can be foreclosed or repossessed. Medical debts do not fall under this category.
- Unsecured debts: debts that are not secured by property, and is separated into priority debts and non-priority general unsecured debts.
- Priority debts: This is just a name for debts that cannot be discharged under bankruptcy such as child support, certain taxes, and others.
- Non-priority general unsecured debts: These are the last debts to be paid off by a Chapter 7 bankruptcy. The majority of debts that can be found can be discharged under this category, including medical debts.
Contact Our California Bankruptcy Team Today
We understand the struggles that many people have found themselves dealing with in these difficult times. You do not have to stay buried underneath your debts, and we pride ourselves in helping people get back on their feet.
If you have any questions regarding how bankruptcy can’t help resolve your medical debts, do not hesitate to contact us today through our website, or give us a call at (818) 805-1758!