If you or someone close to you has been ill, the medical bills can pile up fast, particularly if you are uninsured. With the astronomical costs of healthcare, many people find themselves wondering how they’re going to pay the bills and even consider bankruptcy. Medical debt can accumulate very quickly. Even one day in the hospital can total tens of thousands of dollars. One unfortunate health scare can endanger the stability of even otherwise good money managers who may suddenly find themselves with large bills that they’re unable to pay.
An Answer to Medical Debt
Bankruptcy can provide protection from creditors, whether it’s to make a new beginning or to provide an opportunity to reorganize one’s finances. Various types of bankruptcies provide different options. While the most common type of bankruptcy is Chapter 7, in which all debt is released and filers are given the opportunity to start over financially. Many people also consider Chapter 13 when filing because it prevents aggressive collections such as wage garnishment or judgments. Rather, the debtors are then given five years to reorganize and pay off the debt. Chapter 13 appeals to many who consider bankruptcy because it protects more valuable items, such as a house, from being sold to recover some of the money owed.
Those considering filing for bankruptcy should consult with a bankruptcy attorney. For the initial meeting, clients will be asked to bring records of their debt. They will be reviewed, the process will be explained in more detail, and then the attorney will likely ask for a retainer for representing a client.