Discharge Unmanageable Medical Debt
Medical debt and bankruptcy: A medical catastrophe is one of the most common reasons for the filing of a bankruptcy. Our imperfect health care system in the United States means that, far too often, bankruptcy is the way that enormous health care costs are made manageable.
Fortunately for those who have taken a blow to their financial well-being from an unexpected medical need, medical debt is one of the easiest types of debt to discharge in a bankruptcy. It is, despite its “medical” character, simply unsecured debt no different than credit card or other unsecured debt.
Medical debt is discharged entirely by a Chapter 7 bankruptcy and treated as a lowest-priority unsecured debt in a Chapter 13 bankruptcy payment plan.
In our experience, the professional debt collectors who purchase and pursue individuals for medical debts are among the most aggressive and harassing debt collectors out there. For $200 anesthesia bill, you may be telephoned repeatedly, sued, and garnished mercilessly. In addition, medical debts, once they have gone to collections, are among the quickest to be reported to your credit-report, causing you further damage in terms of your eligibility for obtaining future credit.
If you have suffered a medical disability and are facing enormous medical debt, don’t wait until you are sued and garnished before considering a bankruptcy if you do not have the income to deal with the debt in question.
Contact The Hilla Law Firm, PLLC to schedule a free, initial consultation.