Don’t Let Medical Debt Overwhelm You
A single health setback can result in thousands or tens of thousands of dollars of medical bills. Often, it becomes impossible to pay these medical bills while also staying current on rent, a mortgage payment or other monthly bills and expenses.
Unexpected and unmanageable medical debt is a common reason people seek bankruptcy relief. Whether you file Chapter 7 or Chapter 13 bankruptcy, the Law Office of Scott C. Polman in Niles, Illinois, can help you navigate the bankruptcy process and address the best way to tackle unmanageable medical debt.
Medical Bills Are Unsecured Debt
Healthcare bills are considered general unsecured debt, which means in Chapter 7 bankruptcy, it can be discharged completely as part of the bankruptcy process. If you file Chapter 13 bankruptcy because you want to hold on to a home or other asset, or because your income exceeds the Chapter 7 qualifying amount, then your medical debt will most likely be lumped in with other unsecured debt that you address with your repayment plan. Remember, creditors in Chapter 13 bankruptcy typically recover less than the total amount due. It is unlikely that you would repay the full amount of your medical bills under a Chapter 13 plan.
Whether you owe money to hospitals, clinics, laboratories, individual doctors, dentists or other medical businesses, I can help you assess your situation and determine the best way to resolve it through a Chapter 7 or 13 filing.
Ready To Rid You Of Debt
It is admirable that many people want to pay off their debt — medical or otherwise. However, their good intentions often result in delays in exploring whether bankruptcy is a smarter decision. Some people deplete retirement accounts unnecessarily or take other unwise steps that actually hurt their long-term financial security.
There is nothing embarrassing or shameful about not being able to pay large, unexpected medical expenses. The smart decision is to consult with a knowledgeable bankruptcy attorney. I welcome the opportunity to review your situation and recommend an effective course of action. As an experienced bankruptcy lawyer, I help individuals throughout the greater Chicago area eliminate debt and restructure their financial lives.
BAPCPA disclosure: My firm is a debt relief agency as designated by federal law. We help people file for bankruptcy relief under the Bankruptcy Code.