I frequently speak with clients who have arrived in financial difficulty because of a health issue which was not covered by their insurance policy or when they needed medical help but were not covered with a health insurance policy. Uncovered hospital/doctor bills can ruin even the most careful financial plans.
Most of the time, a bankruptcy case can help. Almost all medical debt is wiped away with a Chapter 7 filing or paid as an “unsecured” debt in a Chapter 13 filing (receiving the lowest payout).
Sometimes a bankruptcy filing makes sense right now. If a medical creditor’s potential lawsuit would interfere with a client’s recovery, clearing the debt away immediately would be prudent. Sometimes delaying or avoiding a bankruptcy case makes more sense. This is true for clients who may be ‘judgment proof,’ which takes the pressure off of filing.
Whether a filing is important immediately or not, it makes sense to learn the pros and cons with an experienced bankruptcy attorney if you are facing medical debt. For those of you in Western North Carolina, I would be pleased to speak with you during a free, initial consultation.