Brownsville Texas Bankruptcy Legal Blog

Many Texas residents avoid going to the doctor as much as possible due to the high cost of health care. However, there are times when seeking medical attention is unavoidable. When a serious illness or injury strikes, the accompanying medical debt could financially devastate a family, and finding a satisfactory way to deal with it could prove elusive.

The first thing that any Texas resident should do when receiving a medical bill is to verify that it is in fact a bill and that the charges are not covered by insurance. Once verified, entering into negotiations with the provider could prove useful. Many medical professionals would rather receive some form of payment rather than none at all.

Many Texas residents experience financial hardships. However, not all of them need to risk losing some of their assets through the filing of a Chapter 7 bankruptcy. Instead, they may qualify to file a Chapter 13 bankruptcy in which most people retain most or all of their assets while reorganizing their financial lives and making payments on debts through a repayment plan.

Texas residents considering this debt relief avenue should know that it is more of a marathon than a sprint, which is one of the primary differences between Chapter 7 and Chapter 13. The repayment plan can last between three and five years depending on an individual's circumstances. Obtaining a thorough understanding of the process is crucial before deciding to file under this chapter of the Bankruptcy Code.

Many Texas residents can attest to the fact that struggling with debt is no picnic. Many households reach the point where they can barely afford the necessities, let alone pay any discretionary bills. At this point, they probably attempted to deal with the overwhelming amount of debt through other means before coming to the conclusion that filing for Chapter 7 bankruptcy would be the best resolution, but the unknown could be intimidating.

Knowing what the basic process entails could make the situation less stressful. The first step is to obtain a bankruptcy counseling certificate by taking a court-approved course no more than 180 days prior to filing. Before filing the petition, it will be necessary to take the means test, which determines whether an individual qualifies to file. If so, then he or she may move on to the next step, which would be to file the petition.

No one plans to get seriously ill or suffer serious injuries. This makes it nearly impossible to plan for it financially. Many Texas residents think that since they have health insurance that they are covered if something happens. Sadly, many people find out that they still owe a great deal of medical debt even with insurance.

This type of debt can easily reach into the tens or hundreds of thousands of dollars. That kind of financial burden can easily devastate a family. The stress of owing the money is great enough, but when creditors and bill collectors start calling, emailing and otherwise harassing Texas residents, the pressure can get unbearable. At that point, it may be time to consider all of the available options.