Medical care can be extraordinarily expensive and it's easy to incur thousands in a short time. If you feel trapped by a load of medical debt, you might want to consider filing for Chapter 7 bankruptcy. Read on to find out how bankruptcy can provide you with peace of mind and a fresh start, especially when it comes to medical debts.
Medical Debts Can be Unique
Those with a lot of medical debt may have noticed that the collection practices are very aggressive. While most debt collectors obey the rules about when and how they can contact you, it can still feel like you are being constantly hounded. In most cases, debts owed to a medical facility are sold to a collection agency. These agencies are relentless in their quest to make you pay what you owe. However, the high cost of medical care can make that all but impossible to do.
Medical Debt Can be Discharged
In a Chapter 7 bankruptcy filing, medical bills are considered unsecured debts and are typically discharged along with other unsecured debts such as credit card debts, personal loans, and utility bills. This means that the debtor will no longer be legally obligated to pay those debts after the bankruptcy case is completed.
Since many debt collectors end up placing liens and wage garnishments on people's assets, listing those debts on the Chapter 7 bankruptcy filing will also cause those punitive actions to disappear.
The Automatic Stay Provides Immediate Relief
While being able to discharge medical and other forms of debt is awesome, relief from collections calls happens right away. Once the Chapter 7 paperwork is filed, you should be contacted by anyone you owe money to again. Debt collectors are prohibited from sending you any mail, email, texts, or calls for any reason. Report any contact attempts to your bankruptcy lawyer.
Watch Out for These Medical Debt Issues
It is important to note that certain medical bills may not be dischargeable in bankruptcy, such as those that were incurred through fraud or malicious acts, or debts that were not listed on the bankruptcy petition. Additionally, if a debtor has any outstanding medical bills after the bankruptcy case is completed, they will still be responsible for paying those debts.
Find out more about Chapter 7 and the effect it can have on your debt obligations such as your medical debts by speaking with a bankruptcy lawyer in your area.
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