It’s no fun being sick. If you're not feeling well, the last thing you should have to worry about is your medical bills. At the same time, such bills can pile up. Even a short medical problem can lead to many kinds of fees. If you are struggling with a chronic illness or a sudden, major illness you might find that your pile of medical keeps getting larger and larger.
If this is the case, you might be wondering if filing bankruptcy for medical bills is a possibility. If you are thinking about this course of action, there are certain things you should know.
The Concept of “Medical Bankruptcy” Doesn't Really Exist
While the term medical bankruptcy is a common one, in reality, there's no such thing. What exists is a process of overall bankruptcy. Bankruptcy is a legal process. When you choose this type of legal road, you are choosing a specific path that is covered by laws. As such, you are essentially declaring that you have bills and you don't have quite enough funds in your accounts to cover them. In turn, you head to the courts under a process that will sort out the bills and enable you to make a fresh financial start.
Types of Bankruptcy Used for Medical Debt
There are two types of bankruptcies used for medical debt - Chapter 7 and Chapter 13.
Chapter 7 bankruptcy
Filing for Chapter 7 bankruptcy allows you to ask for help in paying your bills. Under this process, court officials step in and help clear up your financial problems. You can use this when declaring bankruptcy for medical bills. You will need to meet certain requirements. Your income must be below a certain level. You may need to give up some of your property. While the process can be as quick as four months, keep in mind that this record can remain on your credit report for up to a decade.
Chapter 13 Bankruptcy
Another type of bankruptcy that you can use to help with medical debt is Chapter 13 bankruptcy. Under this process, you agree to plan to pay your bills out over a three to five-year period. This only applies to a certain amount of debt. You are required to have a job.
There are other ways to get rid of this kind of debt. You can often negotiate with the provider and get financial assistance with your bills. That helps preserve your credit rating and overall financial picture.
Contact a Bankruptcy Expert
If you are struggling to pay medical debts, call the experienced Michigan bankruptcy attorneys at Moran law today at 866-820-5495. We can help you find the best way to pay medical expenses, so you can get the fresh start you deserve.
