Helping You Navigate Complex Legal Issues

When the cost of medical treatment is too high

On Behalf of | May 18, 2021 | Chapter 13 Bankruptcy, Chapter 7 Bankruptcy |

Medical bills may mount, especially as you age. Between treatment and prescription medication, sometimes the out-of-pocket costs may make it difficult to pay other bills.

The cost of healthcare is high, and even with Medicare, you may find yourself in over your head. Debt collectors are starting to call you and family members seeking payment with money you do not have. Bankruptcy may help you out of this unpleasant situation. Find out more about how.

Chapter 7 discharge

If you have assets to liquidate, you may want to consider filing bankruptcy under Chapter 7. The trustee appointed by the court will go through your debts and assets, deciding what gets paid. Medical bills fall lower on the priority list than things such as mortgages and loans. Much like credit cards, medical bills fall into the unsecured debt category and a judge may discharge them in their entirety at the end of the bankruptcy process.

Chapter 13 repayment

Do you have a regular and reliable income? If yes, regardless of the amount, you may want to give Chapter 13 bankruptcy a look. The trustee will examine your debts and income to negotiate a payment plan with creditors. The plan allows you to make a payment that the court then sends to the appropriate creditors. The payment plan lasts anywhere from three to five years. At the end, the judge may discharge any remaining debt and give you a clean slate.

You may want to consider finding supplemental insurance to help make your healthcare more affordable. However, when it is past that point now, bankruptcy is an option worth considering.