Discharging Your Medical Debt Through Bankruptcy

The cost of receiving medical treatment, for everything from routine checkups and minor conditions to major surgeries and traumatic events, has steadily been increasing. Studies have shown that a majority of people filing for Chapter 7 or Chapter 13 bankruptcy protection cite medical debt as a determining factor. Surprisingly, many of the people who file for bankruptcy because of overwhelming medical bills have health insurance.

To make it worse, medical debt collectors are known to be some of the most aggressive and harassing creditors of all. Countless people who are burdened by medical debt report numerous daily phone calls at all hours of the day or night, often involving profanity, and letters threatening legal and criminal actions. Unfortunately, the fear that the harassment causes leads many people to make payments they simply cannot afford just to make it stop.

Bankruptcy May Offer A Fresh Start

Bankruptcy is often the best option to handle medical debt. Filing for Chapter 13 or Chapter 7 bankruptcy not only puts an immediate stop to creditor harassment, but it also serves to discharge unsecured debt, giving you a fresh start.

Learn More About Chapter 7

Though these two types of consumer bankruptcy differ, they share the same goal: to wind up in a better financial position. Chapter 7 is also known as "liquidation bankruptcy." Bankruptcy can be alarming to many people who think they might lose everything they own, but that isn't the case. The majority of personal belongings, including clothes, furnishings and work-related items are protected and are kept.

Understanding Chapter 13 Qualifications

Chapter 13, on the other hand, is known as "repayment bankruptcy." This process consolidates multiple debts into a single monthly payment that the filer will pay for a set time (typically between three and five years). Once the repayment period has passed, and the payments have been made, the remaining debt will be discharged. Chapter 13 is particularly useful for people facing the threat of foreclosure, since it allows past-due mortgage amounts to be rolled into the repayment plan, giving the homeowner the ability to get current on mortgage payments and keep the home.

Talk To One Of Our Bankruptcy Attorneys About Your Medical Debt At No Cost

Contact our office to reschedule a free initial consultation with Shelley Slafkes or Bruce Levitt regarding your medical debt and other financial difficulties. You can reach our lawyers by filling out our online form or by calling 973-323-2953. We advise families throughout New Jersey on their bankruptcy options.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.