|Clear medical debt by filing for Chapter 7 bankruptcy.|
Relieving medical debt has never been more prevalent. The rising costs of healthcare and many people's inability to cover themselves with sufficient health insurance coverage has driven many people toward ways to get rid of their medical debts. Many wonder if filing for bankruptcy will cure their ills.
Chapter 7 bankruptcy classifies types of debts in the following categories:
Medical debts fall in the category nonpriority unsecured debts.
Your medical debt will be eliminated by Chapter 7 bankruptcy. There is no cap on how much of your debt can be discharged by filing for Chapter 7 bankruptcy. When you relieve medical debt using Chapter 7, you relieve all of it.
Medical debt is still regarded as an unsecured debt when filing for Chapter 13 bankruptcy. However, Chapter 13 regards unsecured debts differently than Chapter 7.
The percentage you pay is based on your disposable income and the amount your unsecured creditors would have received if you had filed for Chapter 7 bankruptcy. When your repayment plan expires (and assuming you've made your payments faithfully), the remainder of your medical debt—and other outstanding unsecured debts—is discharged.
Filing for bankruptcy is a stressful and exhausting period in your life. There is an overwhelming amount of information you need to be aware of before choosing to file. You need the help of an experienced, professional bankruptcy lawyer to guide you through the process of filing for bankruptcy and restoring financial order to your life.
Oak Creek bankruptcy lawyer Steven R. McDonald is a helpful guiding hand through one of the most important periods in your life. Mr. McDonald boasts 15 years of experience helping residents of southeastern Wisconsin through the trials and tribulations of filing for bankruptcy.
He can help you, too. You aren't alone. Call his office in Oak Creek today and begin to piece your financial life back together.