In 2004, more than 2 million Americans and their dependents filed bankruptcy for medical reasons. Accident victims, injured workers, and sick family members cited medical bills and healthcare expenses as the main reason they were filing bankruptcy. For many of these families, mounding medical bills meant less money to pay mortgages, utilities, and car payments. As a result, credit card debt spiraled out of control until bankruptcy was the only option.
Medical bankruptcy is not the actual term for filing bankruptcy due to medical reasons. Under the bankruptcy code, you must list all of our creditors—not just medical ones. You can choose between Chapter 7 and Chapter 13 bankruptcies, depending on the debt you carry and the amount of assets you own. If you have overwhelming medical debt, it is important to consider bankruptcy as a viable option to get out of debt and start fresh.
Medical debt can include health insurance debt, medical expenses, hospital bills, and other types of credit card debt. When you choose bankruptcy, you will list all of your debt, including mortgages, credit card balances, car loans, and other unsecured and secured debt. All of this debt will then be considered when filing bankruptcy. If you choose bankruptcy, your medical debt and other unsecured debt will be restructured and discharged after you meet certain payment obligations.
Sadly, many debtors are reluctant to pursue bankruptcy—even when they are struggling financially. They are often worried about destroying their credit ratings or making it impossible to get approved for loans again. Yet for many, bankruptcy is a way to help people rebuild their credit quicker than slowly paying down their debt. It can provide you with the tools you need to start anew, unencumbered by past debt.
If you are drowning in medical bills or other types of debt, it is important to know that you are not alone. An experienced Dripping Springs Texas bankruptcy attorney can help you review all of your financial options, so you can choose the one that is best for your future.
Contact our Dripping Springs Texas Law Firm today to speak with an attorney. Call (512) 615-3569to find out how Attorney R. Brian Daniel has helped many other people with legal questions just like yours!