The constantly increasing price of medical care in the United States has created a substantial challenge for many families. As a result, statistics suggest that a large number of individual decide to file bankruptcy due to medical bills. Many families discover that bankruptcy can be a particularly helpful thing in these situations. The bankruptcy process is complicated, however, which is why many individuals decide to obtain the assistance of an experienced Florida bankruptcy attorney.
Chapter 7 Bankruptcy and Medical Debt
A person must qualify for Chapter 7 bankruptcy, which requires a person’s income to be low enough to pass a disposable income means test. In Chapter 7 bankruptcy, medical debt is classified as a type of nonpriority unsecured debt, which means that the debt will often not be viewed as the highest priority to pay back. At the end of Chapter 7 bankruptcy and discharge, the medical debt will subsequently be wiped out. As a result, for individuals who have a substantial amount of medical debt, Chapter 7 is often the most ideal option. Additionally, there is not any limit on the medical debt debt that a person can discharge through Chapter 7. To determine if you are likely to qualify for Chapter 7 bankruptcy as well as to discuss important bankruptcy considerations, you should speak with a knowledgeable bankruptcy attorney.
Chapter 13 Bankruptcy and Medical Debt
The Chapter 13 bankruptcy process requires a person to create a repayment plan that lasts a period of between three to five years. The amount of a debt that is be repaid depends on how the debt is classified. Debts that are owed to medical professionals are classified as unsecured debt, which means that a person has not pledged property as collateral as a promise to repay the debt. As unsecured debt, many individuals end up paying only a portion of the amount as part of a Chapter 13 repayment plan. Provided that you make payments reliably, the medical debt that remains at the end of your repayment plan period will be discharged.
Maintaining Medical Providers After Declaring Bankruptcy
One of the most common questions that people who have a large amount of outstanding debt have is whether they will lose their current medical providers if they declare bankruptcy. With the exception of emergency room care, however, medical professionals can decline to treat you if your debt has been discharged in bankruptcy. Many people, however, discover that medical professionals will keep them as patients provided that they continue to pay medical bills going forward. In case you do lose a medical provider, it is fortunately often not difficult to find a new care provider.
Speak with a Florida Bankruptcy Lawyer Today
While bankruptcy offers its advantages, it is also often a particularly complicated process. If you have questions about the bankruptcy process, you should not hesitate to obtain the assistance of an experienced bankruptcy attorney. Contact Adam Law Group today to schedule an initial free consultation.