If you have been hit with a devastating illness or were injured in a devastating accident, then you may be losing money fast. As a result of your sickened state, you may not be able to work. While your savings accounts are dwindling to support a family, you are also collecting a stack of medical bills for all of the treatments that you are receiving. As a result, you may end up in debt to credit card companies, hospitals, and more. You may not be able to cover the mortgage on your home or pay the balance on your car payments. As you struggle to obtain the money to put food on the table and satisfy doctor’s bills, you may be wondering what step to take.
If you are in a dire financial situation and don’t have anywhere to turn, your best bet may be to file for a medical bankruptcy. This is a special type of bankruptcy that is particularly reserved for those that are dealing with a medical emergency that has caused financial danger. While there is a specific title for a medical bankruptcy, there is not specific procedure. There are six different types of bankruptcy that are legally allowed in the United States, and only two are regularly used for dealing with individual debt. Technically, the courts will not make a distinction between medical debt, credit card debt, and personal loan debt. The court recognizes that a medical emergency will probably affect every area of your life. Instead of merely dealing with medical expenses, you will also have to cover the costs of a credit card debt, a defaulting mortgage, or other costs that you couldn’t meet because of your hospitalization.
If you need to file for bankruptcy after a medical emergency, then you should start by investigating other alternatives. Medicaid can often help people who have very low incomes and are dealing with a medical condition. Sometimes, prescription drug assistance programs can help people who need to purchase expensive medications and don’t have the money to do so. All hospitals have a patient assistance program that can discharge some of your expenses if you meet their criteria. For some ill individuals, there may be a way to get all medical expenses discharged without ever having to file for bankruptcy.
After you have explored these options, you will want to gather up all account statements and all information regarding your home, car, or any other major assets that are in jeopardy. You will need to determine how much debt you have before you can file for bankruptcy. An attorney can help you in this endeavor. With the help of a bankruptcy professional, you will need to determine whether or not you should file for a Chapter 7 and Chapter 13. A Chapter 7 bankruptcy will mean liquidating your assets and using the proceeds to pay back what you can of your liabilities. In a Chapter 13 bankruptcy, the court will help you to restructure your finances into a 3-5 year payment plan where all your excess income will go to covering the costs of your debts. All debts that are not included in the payment plan will be discharged.
Whenever you are dealing with any type of bankruptcy, it is essential that you get an attorney involved. An informed lawyer will be able to guide you as your make decisions regarding your finances and how you can handle debt reduction. Once you have declared bankruptcy, the court will put automatic stay on all of your accounts. This means that your creditors can’t take legal action or usurp your finances or contact you regarding the money y you owe. You will need to attend a meeting of creditors after filing where you will explain how you intend to pay the money that is not dischargeable. You will want to attest that you were truthful when filling out your schedules and show the creditors that you are hoping to pay them back in short order.
After this short meeting, creditors have 60 days to write a notice challenging the bankruptcy. If no one contests, then you will receive a notice of discharge. After this you will need to take the necessary measures outlined by the court in order to satisfy the money that you owe. Contact a bankruptcy attorney in your area today to get started with your bankruptcy and eliminate your debts! You can eliminate your medical debts and avoid foreclosure on your home or lawsuits from creditors by filing today!