Eliminate Your Debt And Get A Fresh Start

How can bankruptcy help with overwhelming medical debt?

On Behalf of | Aug 12, 2022 | Bankruptcy

Medical care is expensive, and even those who have insurance may find that they owe thousands of dollars in medical bills after an emergency or unexpected medical need. Overwhelming medical debt can eventually begin to affect multiple areas of your life. You may find that these financial obligations impact your other bills, and eventually, you have an insurmountable amount of debt that you can no longer manage on your own.

Thankfully, there are options available to you. It may seem like there is no way out, but you may find relief in the process of bankruptcy. Certain bankruptcy options allow you to discharge certain types of debt, including medical bills and other unsecured debt. If you can no longer handle your medical bills on your own, you may want to learn more about how bankruptcy could benefit you.

Which chapter of bankruptcy is right for you?

Chapter 7 bankruptcy is a popular choice for those in Georgia who owe a significant amount of medical debt. It only takes a few months to complete, and at the end of the process, there is a discharge of certain types of balances. However, this is liquidation bankruptcy, and applicants may have to liquidate some of their assets in order to first pay creditors. In order to qualify for Chapter 7 bankruptcy, you must take a means test that evaluates your income, assets and more.

If you do not qualify for Chapter 7, Chapter 13 bankruptcy could be an option for you. In this type of bankruptcy, your medical debt will combine with other debts, and you will have to pay creditors back over time. This process could take a few years to complete. The terms of your debt repayment plan depend on the type of debt you owe, how much debt you have, your income and more.

Finding the right solution for your medical debt problem

If you are facing a significant amount of medical debt, you do not have to face it alone. By understanding your legal options, you can make decisions that will give you the best chance at a strong financial future. Through bankruptcy, you can confront your debt once and for all. If you are unsure if bankruptcy is the best choice for you or what the qualifications may be, it might be helpful for you to seek an assessment of your case.