Fearing An Indictment By The Hospital? Filing Bankruptcy Will Discharge Your Medical Debt

Fearing An Indictment By The Hospital? Filing Bankruptcy Will Discharge Your Medical Debt

As you’re facing trouble repaying an outsized medical bill, and are considering filing bankruptcy at the same time, be sure you look into other choices first—if you have a healthy credit. There’s no denying the fact that filing bankruptcy may lead your credit to fall (although it doesn’t last long). If you, however, fail to pay the bill, and yet don’t consider filing bankruptcy, chances are high you will land in an even worse financial crisis.

Here’s what you can expect – It will start with late-payment notices sent to you. Eventually, the hospitals may indict you for acquiring a money judgment. Following this you can be charged with a bank levy, wage garnishment or a lien placement against your property—and you may not be able to drive certain consequences back during bankruptcy.

Medical debt in bankruptcy If you are unable to pay off your medical dues and it appears like the medical provider may trail you for payment anytime now, know that all your good credits are likely to take a hit due to the collection action that is going to stay on your credit report for quite a long time. Also, if the hospital indicts you

and acquires a judgment, you may face wage garnishment or have to go through other collection actions.

Not just can filing bankruptcy discharge your dues, but the sooner you choose to declare, the sooner you’ll recover.

Chapter 7 and medical due: If you are out of the job, but have properties with little or no equity, Chapter 7 bankruptcy is a wise option for you. You are not required to show a certain number of debts.

You are allowed to file Chapter 7 bankruptcy even on a single, however significant, debt. Medical debts can be wiped out just like any other unsecured debt (if not secured by collateral) in Chapter 7 bankruptcy.

Chapter 13 and medical due: In case you fail to qualify for Chapter 7 bankruptcy, or you own certain assets that you may have to let go in a Chapter 7 bankruptcy, consider filing Chapter 13 bankruptcy. In this bankruptcy type, you’ll repay a portion of the medical debt through the repayment plan. Following the payment, the bankruptcy court will eliminate the remainder.

Perks of filing bankruptcy While people still consider bankruptcy as a last resort, the one of many advantages of filing bankruptcy is that it enables people to manage their debts and push on in their life. The impending advantages of personal bankruptcy include:    

Perhaps holding back property, such as house and car Elimination of unsecured debts such as credit card bills or medical bills An opportunity to expect a fresh financial start A stop to harassing credit collection phone calls

Bankruptcy helps people reorganize their debt, so life gets easier again. For instance, a part of the bankruptcy procedure will agree to consolidation of your debt into a more feasible payment or to forgive a portion of the debt while allowing paying the remaining balance.