Taking care of your health and the health of your family can be very costly. Many times, an unexpected health issue can cause significant setbacks to your finances. It could be that you don’t have insurance, or that you experience a sudden health crisis, which leads to a pile of medical bills that can be overwhelming. The burden of medical debt can make it so you can’t other bills and can totally disrupt your life. In this situation, filing for bankruptcy could be the best way to get rid of crippling medical debt and get you started on a path back to financial stability.
Medical Debt and Atlanta Bankruptcy
If you choose to file an Atlanta bankruptcy to help take care of your medical debt, it is important to know that there are different types of bankruptcy. How medical debt is treated depends on which type of bankruptcy you choose to file, a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
- Chapter 7 Bankruptcy: If you choose to file for a Chapter 7 bankruptcy, your assets will be liquidated to pay for some of your debts, while other debts will be discharged, or totally eliminated. In a Chapter 7 bankruptcy, your debt will be classified in different ways. Some of your assets may be exempt from the bankruptcy, meaning they can’t be taken and sold to cover your other debts. Medical debt is considered an unsecured debt, meaning it can be totally eliminated by the bankruptcy. Medical debt is also a “nonpriority” debt, meaning it is not a priority to pay back those creditors first. Additionally, if you used a credit card to pay for your medical bills, this debt can also be discharged.
- Chapter 13 Bankruptcy: Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy does not involve liquidating your assets. Instead, it involves creating a 3-5 year debt repayment plan, giving you time to get back on your feet financially. In a Chapter 13 bankruptcy, your medical debt will be combined with other unsecured debts in your repayment plan. You will then make payments on your medical debt for the duration of your plan. When you have finished your plan, your medical debts will be removed.
Far too often medical debt can pile up quickly and have a negative impact on your financial situation as a whole. With how expensive medical care can be, even just one incident can lead to mounting debt as a result of medical bills. When facing overwhelming medical debt, bankruptcy may be the best way to get out of this difficult situation and prevent further financial trouble.
If you find yourself struggling financially because of your extensive medical debt, reach out to the skilled attorneys at the Ballard Law Group. Our compassionate Atlanta bankruptcy attorneys have years of experience guiding individuals through the bankruptcy process and assisting them in making decisions that help change the course of their finances and lead to a better future. If you would like to discuss your situation and options to alleviate your medical debts contact us for a case consultation by calling 404-220-9906.