If you had surgery, needed medical care after an accident or just recovered from a serious illness, you are likely facing serious medical bills. Even with insurance, the cost of medical care is exorbitantly high, and the accumulation of your bills could quickly outpace your ability to pay.
It is common for medical debt to cause financial hardship, and, eventually, this type of debt can impact your ability to keep up with your other bills. It can snowball into more credit card debt, missed mortgage payments and more. Fortunately, simply drowning in this type of debt is not your only option. By filing for bankruptcy, you can effectively confront this debt and move toward a strong financial future.
Chapter 7 bankruptcy for medical debt relief
Chapter 7 bankruptcy is a common option for Texas residents who find themselves facing unmanageable amounts of debt due to medical bills. This particular chapter of bankruptcy requires the liquidation of non-exempt assets to pay off unsecured debts, which includes debts owed to care providers. This allows the applicant to emerge from the process with little to no debt. Other benefits of Chapter 7 include:
- Protection from creditor harassment
- Organized and effective way to deal with various types of debt
- Ability to keep certain important assets, such as home or car
Bankruptcy may not seem like an attractive option, but it offers many benefits to those who are unable to manage their debt on their own. Not everyone who wishes to apply for Chapter 7 bankruptcy will be eligible, but there could be other options available.
Limits to bankruptcy
Bankruptcy is viable way to deal with medical debt, but there are certain types of debt that are not dischargeable most of the time. This includes back child support, student loan debt and more. In some cases, it may be beneficial to explore the other options that are available to you before making a very important decision that will affect your financial life.
Why you need an experienced guide
Bankruptcy is a complex legal process, and it is not one easily navigated on your own. You will find great benefit in securing the help of an experienced attorney to help you make the right decisions for your individual situation and make sure you follow all of the necessary requirements.
Medical debt is frustrating, but there is a way out. If you are unsure of how to begin the process or do not know if Chapter 7 bankruptcy is the right choice to deal with your medical debt, an evaluation of your case can identify the most appropriate option for your unique situation.