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January 2024

The Role of Bankruptcy in Resolving Medical Debt

By Financial Tips No Comments

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? Call David S. Clark

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.

Chapter 7 Bankruptcy: Is It Right for You?

By Chapter 7 Bankruptcy, Financial Tips No Comments

A breakdown of Chapter 7 bankruptcy

Are you facing overwhelming debt and financial challenges in Auburn or Opelika, Alabama? If so, you may be considering Chapter 7 bankruptcy as a potential solution. Yet, there are a few things to consider before making any decisions. Here is a quick breakdown of Chapter 7 bankruptcy and if it’s right for you from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama. 

What is Chapter 7 Bankruptcy?

Before any decision, it is important to have a foundation of knowledge about the issues at hand. Chapter 7 bankruptcy is no different, especially with the myths surrounding it. So, what is Chapter 7 bankruptcy? 

Chapter 7 bankruptcy, often referred to as “liquidation” bankruptcy, is a legal process that allows individuals to discharge unsecured debts, providing a fresh start. Unsecured debts include: 

  • Credit card balances (including overdue and late fees)
  • Medical bills
  • Personal and payday loans 
  • Mortgage or automobile loans for which you are unable to pay
  • Utility bills
  • Social Security overpayments
  • Veterans’ assistance loans and overpayments

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? Call David S. Clark

How Does Chapter 7 Bankruptcy Work?

In a Chapter 7 bankruptcy filing, a dedicated trustee is appointed to liquidate non-exempt assets, which are then used to repay creditors. Ultimately, while it may be scary, giving up physical assets to help balance debt is usually required.

Items that the state can take to help balance your debt are known as nonexempt assets. Exempted assets are those that cannot be taken by the state to balance your debt. Learn more here.

Assessing Your Eligibility for Chapter 7 Bankruptcy

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.

Ultimately, every Chapter 7 bankruptcy case is going to be different. So, finding a dedicated bankruptcy attorney could be the difference between success and failure. 

How an Experienced Bankruptcy Attorney Can Help

In conclusion, Chapter 7 bankruptcy can be a powerful tool for residents in Auburn and Opelika facing financial hardships. By understanding the process, assessing eligibility, and seeking the guidance of a bankruptcy attorney, you can make an informed decision about whether Chapter 7 is the right solution for you.

Navigating the complexities of bankruptcy law can be challenging, but a skilled bankruptcy attorney such as David S. Clark can guide you through the process. This includes assessing your financial situation, helping you understand your options, and ensuring that your bankruptcy filing is completed accurately and efficiently.

If you’re considering Chapter 7 bankruptcy in Opelika, Alabama, the team of experts at David S. Clark is here to help. Contact us for a free consultation to discuss your financial situation and determine your best course of action 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.