Bankruptcy for Medical Bill Relief
When unexpected health problems strike, costs of life saving medical treatments can quickly add up. If you are uninsured or underinsured, these bills can quickly become overwhelming. Medical debt problems afflict both individuals who have been struggling with debt for years and people who have never before had a bill they could not pay. Hospitals charge outrageous rates to uninsured customers and are often surprisingly quick to send debt collectors calling.
A bankruptcy discharge eliminates most medical debt. Medical debt does not get special treatment in bankruptcy. Medical debt is generally unsecured debt, a type of debt where no property has been pledged to secure payment. To seize assets, a creditor would have to obtain a judgment and execute upon it through judicial process. Most unsecured debt, including ordinary medical debt, is discharged when a debtor obtains a bankruptcy discharge. The medical creditor would receive only what the law determines you are able to pay, either from your assets in chapter 7, or from your income in chapter 13. In many individual bankruptcies, general unsecured creditors are discharged without receiving any payment on their debt.
Many people turn to bankruptcy when overwhelmed by medical debt. The sort of sudden and unexpected financial crisis represented by overwhelming medical bills is very much a reason why we have a bankruptcy system in the United States. Are you ready to get out from under your medical bills today? Don't wait, start your free bankruptcy evaluation now.