The rising cost of healthcare is a major concern for many Americans. In fact, it is a prime reason why individuals often file for personal bankruptcy. If you find yourself drowning in medical bills, you’re not alone. Many Milwaukee residents are unsure how to clear medical debt and may question if filing for bankruptcy is the right option. The good news is that bankruptcy can offer a fresh start to someone overwhelmed by medical bills.
The need to relieve medical debt has never been more prevalent. Read on to learn more about how you can find debt relief through bankruptcy.
The Feeling of Drowning in Medical Bills is All Too Common
An American Journal of Public Health study found that 66.5% of all bankruptcies are related to medical issues. The cause of bankruptcy was expensive medical bills or absence from work. Most families do not have enough money saved for a simple emergency, let alone thousands of dollars in unexpected medical costs.
However, one financial assistance option is to find grants to help pay off medical bills. Most hospitals have assistance programs that, if you qualify, will give you free or reduced hospital care, depending on your level of income. But if you can’t settle the debt and it looks as if the creditor may pursue you for payment, we recommend speaking with a local bankruptcy lawyer for legal advice on how to proceed.
Chapter 7 Bankruptcy Can Help With Medical Bills
Chapter 7 bankruptcy allows you to eliminate most types of debt such as credit cards, utilities, and repossessions. Since medical bills are considered “non-priority” or general unsecured debt, they can also be eliminated by Chapter 7. There is no limit on how much of your debt can be discharged. When you file for bankruptcy to reduce medical debt, you relieve all of it. That even includes any medical bills you don’t get until after the bankruptcy case is filed. The debt is dischargeable as long as the medical treatment happened before filing.
How Bankruptcy Can Affect Your Credit
If you’re considering bankruptcy due to medical bills, know that this is a significant step that will have lasting implications for your credit for years. A Chapter 7 bankruptcy can stay on your credit reports for up to 10 years from the filing date, while a Chapter 13 can remain for up to seven years after the filing date.
Bankruptcy filings are unavoidable in many medical debt situations. But getting professional help early on can aid you in repairing your credit score and set you on the right path toward a fresh start. While it may take some time to rebuild your credit, it is possible. And paying off medical bills can only help improve your credit.
Now is the Time to File for Bankruptcy to Reduce Medical Debt
Many people who find themselves drowning in medical bills think that there’s no way out. We’re here to let you know that there indeed is. If you have high medical bills, we strongly urge you to speak with one of our attorneys. Medical debt incurred before you file bankruptcy is eliminated when you receive your bankruptcy discharge. But timing is of utmost importance.
Don’t wait to speak with a bankruptcy lawyer. The sooner you file, the sooner you’ll be back on the road to financial recovery. The Bankruptcy Law Center LLP is experienced in assisting clients who are filing for bankruptcy in Milwaukee. We know the ins and outs of the U.S. Bankruptcy Code and can help you get the most out of your bankruptcy.
Contact the Bankruptcy Law Center today for a free case evaluation!