Medical debt is a big problem in America. It’s been reported by CNBC that approximately 30% of working Americans have some kind of medical debt. A majority of Americans with medical debt report that they’ve defaulted on that debt. Further, it was reported that in 2016, more than 1 in 4 American families experienced issues paying medical debt.
Opting For Bankruptcy to Discharge Medical Debt
Bankruptcy is often a viable option for Americans facing overwhelming debt, medical and otherwise. Bankruptcy can wipe away most of your medical debt if you are able to obtain a discharge of that debt from the bankruptcy court. If you or your family find themselves considering bankruptcy to resolve medical debt, the following is some important information to consider.
The first issue to consider is whether there are other, non-bankruptcy options to resolve that debt. There are charities and other organizations that may be able to help you get rid of debt in some circumstances. This may depend greatly upon your income, on the amount of debt, and other factors. However, in many cases, it’s worth doing some homework and research on the issue.
The second issue to consider is that bankruptcy is a process that encompasses all of your assets, debts, income and expenses. Stated another way, you cannot include just certain debts in your bankruptcy, while keeping other debts out of your bankruptcy. There’s no real way to just bankruptcy “a” debt. The same goes for your assets, income and expenses. All of these are accounted for in your bankruptcy, must pass through the bankruptcy process, and ultimately have an impact on the type of bankruptcy you file, and how much of a distribution, if any, will be made to your creditors.
The third issue to consider is whether bankruptcy there are other debt and asset-related issues to take factor into your bankruptcy considerations. For instance, if you qualify for Chapter 7 bankruptcy to discharge your medical debt, but you are behind on mortgage payments, you may want to consider Chapter 13 to reorganize your secured debt, and pay back your mortgage arrears over a period of time. Further, if you have a good deal of non-exempt equity in various property that you may own, this is another reason to consider a reorganization using Chapter 13 or even using Chapter 11 in order to prevent liquidation of your assets by a Chapter 7 trustee.
However you decide to deal with your medical debt, you should remember that you are not alone. Not only are millions of Americans dealing with medical debt every day, but there are also many options to resolve that debt. Bankruptcy may be your best option, and therefore you should schedule a free initial consultation with experienced bankruptcy attorneys to review all of your bankruptcy and non-bankruptcy options.
Discharging Debt with Middlebrooks Shapiro
Though filing bankruptcy has a certain stigma, it can provide relief to many individuals, couples, and businesses. If you are struggling with debt, it may be time to think about bankruptcy. Considering the advantages and disadvantages of discharging medical debt through bankruptcy is a complex and often time-consuming process. The experienced bankruptcy attorneys at Middlebrooks Shapiro are well versed in personal bankruptcy and business bankruptcy options to aid in the discharge of unwanted debt, medical and otherwise. Our highly trained team will always consider your specific situation and assist you in weighing the potential benefits of filing bankruptcy, as well as any potential drawbacks you might face during the process as a whole. Ready to reap the benefits of filing bankruptcy? Schedule a free, no obligation consultation with a Middlebrooks Shapiro attorney today!
