How bankruptcy can help when medical debt becomes unbearable.
Throughout Alabama, medical debt can quickly spiral out of control, leaving individuals and families facing overwhelming financial burdens. Specifically, almost 20% of all residents in Alabama are people with medical debt in collections.
Fortunately, bankruptcy can serve as a lifeline for those struggling with medical bills, offering a path to financial relief and a fresh start. Below is a breakdown of the role of bankruptcy in resolving medical debt, how a bankruptcy attorney can help, and more from David S. Clark, a Chapter 7 and Chapter 13 bankruptcy attorney in Opelika, Alabama.
The Impact of Medical Debt
Unfortunately, medical debt can arise unexpectedly due to emergencies, illnesses, or lack of health insurance. Yet, even with insurance, out-of-pocket expenses such as deductibles, copayments, and non-covered services can accumulate rapidly, causing a great amount of stress.
With that in mind, it can be hard to live with the weight of medical debt around you or your family. Thankfully, you are not alone and there are options available!
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
Need Bankruptcy Help?
Bankruptcy as a Solution
Bankruptcy, particularly Chapter 7 and Chapter 13 bankruptcy, offers viable solutions for addressing medical debt and gaining a second chance regarding finances.
Before breaking down these chapters of bankruptcy, though, it is important to know that bankruptcy is not always a clean slate. Furthermore, every bankruptcy case is different, so talk to an experienced bankruptcy attorney about your options.
Chapter 7 Bankruptcy
Also known as “liquidation bankruptcy,” Chapter 7 allows eligible individuals to discharge unsecured debts, including medical bills, credit card debt, and personal loans.
Qualification for Chapter 7 Bankruptcy involves submitting your average income and disclosing any assets or unexpired leases you possess. Your bankruptcy attorney will assist you in evaluating your property and assets to determine the feasibility of liquidating them.
Chapter 13 Bankruptcy
Alternatively, Chapter 13 bankruptcy involves creating a court-approved repayment plan to repay a portion of debts over a specified period, typically three to five years. Medical debt can be included in the repayment plan, allowing debtors to manage their obligations while retaining assets such as a home or vehicle.
Navigating the Bankruptcy Process in Opelika, Alabama
As mentioned above, before anything, it is essential to consult with a knowledgeable bankruptcy attorney who can help you choose the best option for your unique situation.
Ultimately, bankruptcy offers more than just a means of resolving medical debt. It provides individuals with a fresh financial start, freedom from creditor harassment, and the opportunity to rebuild credit over time. By taking proactive steps to address medical debt through bankruptcy, individuals in Opelika can regain control of their finances and move toward a brighter financial future.
From his many valuable years of experience serving the Auburn and Opelika, Alabama community, David S. Clark is knowledgeable and prepared to help you start your journey back to financial security. If you need help navigating the stress, intricacies, and complexities of Chapter 7 or Chapter 13 Bankruptcy, contact David S. Clark, Attorney at Law today!
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.