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While medical debt is no different from any other type of debt, many people find the especially high rates charged by hospitals and doctors to be overwhelming. In today’s world, a single medical procedure can cost enough to wipe out your savings and still have debt left over.
Fortunately, bankruptcy can help you and your family get out from under this crushing debt and start again. It’s a legal tool that exists to help ordinary people move forward with less financial worry, and I’m here to help you understand the process from start to finish.
Keep reading this article to discover…
Yes. If you file for Chapter 7 or Chapter 13 bankruptcy, your medical debt is entirely dischargeable. This allows you to be either entirely free of this debt or see some of it forgiven and the rest paid off in manageable installments.
Despite the common belief that you will lose everything in a bankruptcy, the truth is that so long as your assets are covered by proper exemptions, you can keep them as your medical bills are discharged. This means that if your bankruptcy is filed correctly, you shouldn’t lose anything.
Common exemption categories include…
If you have non-exempt assets, filing for Chapter 13 bankruptcy is often a better choice. You may have to pay back some of your medical debt, but you can do so in a less overwhelming manner over time.
Yes, your doctor, hospital, and other medical specialists will be automatically notified that you’ve filed for bankruptcy. Once notified, these facilities and individuals are legally required to stop pursuing you for payment. This gives you relief from unpleasant letters and phone calls and allows you to focus on the bankruptcy process ahead with your attorney.
How Does The Filing Process Differ For Medical Debt Compared To Other Types Of Debt In Bankruptcy?
All debts are treated the same. Simply bring your medical bills to a bankruptcy attorney, and they can help you file for Chapter 7 or Chapter 13 bankruptcy to begin the process of discharging these debts. There is no special filing process for dealing with medical debt in particular.
If you present your discharge of debt to an individual credit reporting company, they’ll remove that debt or mark it as discharged in bankruptcy. This is not an automatic process, so you will have to take the time to show evidence that your medical debt has been cleared to each credit reporting company.
For more information on How To Handle Medical Debt Through Bankruptcy In New Jersey, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (732) 733-2830 today.
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