Search Site
Menu

How Heavy Medical Debt Can be Relieved Through Bankruptcy

If you’ve had a serious illness or injury requiring extensive treatment, bills can quickly add up. In addition, you may be unable to work during the course of your recovery, which can compound your financial woes. If you cannot make the minimum payments on your medical bills and they continue to accumulate, you might consider filing for bankruptcy.

Both Chapter 7 and Chapter 13 bankruptcies offer solutions for people who are overwhelmed with unmanageable medical bills. Chapter 7 can wipe out medical debt and other debts. Chapter 13 lets you repay debts over an extended period of time. The type of bankruptcy that will best serve your needs depends on your personal financial circumstances.

Chapter 7 offers these advantages:

  • Your medical debt can be eliminated entirely.
  • There is no limit as to how much debt can be discharged.
  • There is no repayment plan or requirement to pay back any of the debts.

However, to be eligible for Chapter 7, you must pass the “means test,” which determines whether you are truly unable to pay off at least some of your debt.

If your income is too high to pass the means test, Chapter 13 may be the right option for you. Also known as a “wage earner’s plan,” a Chapter 13 bankruptcy offers these advantages when you’re seeking medical debt relief:

  • You can keep most of your property and assets.
  • You can reorganize your unsecured debts, including medical bills, and pay off a portion of them over a three- to five-year period.
  • Once you have completed your repayment plan, the court will discharge any of the remaining debt.

Declaring bankruptcy to obtain medical debt relief is a big decision that requires forethought. You might first consider whether you can negotiate with your medical providers for reduced rates or modified payment schedules. You may also explore ways to refinance your medical debt. If you have exhausted your alternatives, bankruptcy may be your best course of action.

Getting your medical debt discharged in bankruptcy can help alleviate the substantial financial burden you may be facing. Jeff Field & Associates assists clients with filing Chapter 7 and 13 bankruptcies throughout the Atlanta metropolitan area. We have offices in Athens, Douglasville, Gainesville, Lawrenceville, Marietta and Scottdale. To schedule an appointment, call 404-381-1278 or contact us online.

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • lawyers
    5.0/5.0

    Working with Jeff Field & Associates was a pleasure. My attorney and case manager were awesome. They made this journey as smooth as possible and overall just very professional. I will recommend their services to anyone who is seeking help in gettin...

    Read more

    Client

  • google
    5.0/5.0

    I have had the absolute pleasure of having worked with Jeff Field and associate over the last five years. From the start they were responsive and informative and were a huge help in me getting financial independence. Everyone I have worked with espec...

    Read more

    Kimberly Alfred

  • google
    5.0/5.0

    This was by far a seem less process. Everyone was extremely helpful and a joy to work with. They answered all of my questions and followed up quickly when needed. Needless to say, I would definitely recommend their services to all of my friends and f...

    Read more

    Jason Barnes

  • google
    5.0/5.0

    They made my Title 7 bankruptcy as smooth of a process as possible! They made sure to list everything on my end and took care of the rest. I would highly recommend them if filing for bankruptcy is a possibility.

    Read more

    Julie Mitchell

  • google
    5.0/5.0

    My experience with Jeff Field & Associates (“JFA”) started back in October 2017, when I decided to file for bankruptcy. They are knowledgeable, responsive and cared about my case from start to finish. JFA provided me with a great team, which help...

    Read more

    Victoria Scott

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form