Get Rid of Medical Debt By Filing for Bankruptcy
Burdened with medical bills that you can’t possibly pay? Would you turn to bankruptcy to have your debt discharged? Due to the rising healthcare costs, it’s pretty common nowadays for people to opt for bankruptcy just to get rid of their medical debt. The question is why and is bankruptcy the best option.
Why People Turn to Bankruptcy to Eliminate Medical Debt
During times of economic turmoil, plenty of people lose their jobs and go through extended periods of being unemployed, which leaves significant holes in their healthcare insurance coverage. Also, those who have very little to spare usually go with cheaper healthcare insurance plans to get reduced premiums and save some money.
However, what some people don’t realize is that reduced premiums typically with high deductibles, which makes them more prone to acquiring higher costs before their coverage kicking in, explains a renowned medical bankruptcy lawyer from Barski Law Firm, PLC in Scottsdale, AZ.
But of all the debt that the average American incurs, medical debt is among the top kinds of debt that they’re more inclined to pay off. Because of this, some people opt to take out loans, open a credit card, or ask for more credit, which in turn results in more debt. So is bankruptcy the way to go? The answer would generally depend on the specific circumstances of the person burdened with medical debt. However, it’s crucial that you thoroughly research your options and do your due diligence before filing for bankruptcy.
Other Vital Things to Note
If you’re considering bankruptcy to discharge your medical debt, you should know that this relief is only often available to “medically distressed debtors”. 25% of these people’s income goes to health care costs and related expenses. But do note that this same classification could apply to any person who’s incurred the same percentage due to lost wages or if he or she has been on unpaid leave for a month at least because of an injury or illness.
When considering filing for bankruptcy to get rid of medical debt, you would also need to determine which type of bankruptcy, Chapter 7 or Chapter 13, would be most beneficial in your case. With that being said, speak to a bankruptcy attorney to figure out the best course of action for you.