No matter how careful you are, a medical emergency can lead to financial ruin. Expensive medical bills, high deductibles, and co-pays can easily translate into tens of thousands of dollars in fees. And when you are unable to pay, this debt can accumulate quickly. In fact, a survey showed that 66.5 percent of respondents cited medical expenses as a major contributor to their financial problems.
If you are facing a situation like this, you may be wondering if discharging medical debt through bankruptcy is possible. The short answer is yes. With the help of an experienced Minneapolis bankruptcy lawyer from Walker & Walker Law Offices, people who are overwhelmed by the burden of medical bills can declare bankruptcy and clear their debts. You can reach out to our attorneys to learn more about this option.
How Medical Bills Pile Up
It only takes one hospital visit for anyone to accrue huge medical bills. Scenarios that lead to lifelong healthcare-related debt include:
- An accident or medical illness resulting in an expensive hospital visit
- A victim or patient losing income from not working due to a prolonged hospital stay or ongoing medical treatment
- Insurance plans providing limited coverage, forcing patients to pay high out-of-pocket costs
- Medication expenses piling up
It is easy to see how bad things can get very quickly. Our attorneys are here to help those struggling with overwhelming medical bills discharge their debt through bankruptcy.
The Effects of Medical Debt
When individuals cannot pay these huge medical bills, hospitals often resort to sending unpaid debts to collection agencies and seeking court injunctions to place liens on patient bank accounts or employ wage garnishment tactics that automatically deduct huge sums—up to 25 percent—from the patient’s monthly paycheck.
This often translates into constant harassment from debt collectors and extreme mental and emotional stress for the patient. Our lawyers can explain how a bankruptcy filing can help discharge medical debt.
How Can Filing a Chapter 7 or Chapter 13 Bankruptcy Help With Medical Debt?
A Chapter 7 bankruptcy filing can help discharge unsecured debts, including medical debt. This is often the quickest way for financially burdened individuals to clear those debts while still keeping their home, vehicle, and other household items. It can also provide these individuals with a fresh start.
To qualify, filers are usually required to undergo a means test to prove that they cannot afford to pay their medical bills. Once their attorney files the bankruptcy petition for them, an automatic stay kicks in, stopping all creditor harassment, wage deductions, lawsuits, and other stressors.
People who owe medical debts can also file a Chapter 13 bankruptcy. Also known as a debt reorganization plan, this usually helps with restructuring debt repayment, making it more manageable. This option is available to individuals who do not qualify for a Chapter 7 due to a stable monthly income and other factors.
A Chapter 13 bankruptcy filing can help spread payments over three to five years, with the possibility of discharging whatever is left at the end.
Learn How Bankruptcy Can Help Discharge Medical Debt
No one deserves to face financial ruin because of an illness. Yet, this is the reality of some Minneapolis residents. With legal guidance from our experienced Minneapolis bankruptcy attorneys, you can explore how to discharge or manage your medical debts through effective bankruptcy filings. We have helped many in similar situations and know how to navigate this complex process.
Contact us to discuss discharging medical debt through bankruptcy today.
