Struggling With Medical Bills? A New York Bankruptcy Attorney May Be Able To Help
If you’re having trouble paying your medical bills, a New York bankruptcy attorney at The Law Firm of Joseph Lassen may be able to assist you.
The increasing cost of healthcare is making it difficult for many people to keep up with their medical debt. In fact, medical bills are one of the most common reasons why people file for bankruptcy in the United States. While this is a serious problem that needs addressing, there are ways you can help ease your burden of overwhelming medical bills.
One potential solution for dealing with overwhelming medical bills is to file for bankruptcy. A bankruptcy lawyer can help you understand your options and guide you through the process. Our New York bankruptcy lawyer can help you find a solution that fits your unique situation and help get you back on your feet financially.
You're Not the Only One Who Struggles With Excessive Medical Bills — Help Is Available
Medical debt is a leading contributor to personal bankruptcy. Research from the American Journal of Medicine cited that medical debt caused 62 percent of bankruptcies in 2009. Unlike other types of debt that are the result of poor financial planning, medical debt is usually due to something entirely out of your control – an illness or injury.
If you become sick or injured, oftentimes, you’re unable to work and generate income to pay off the bills. Many American families live paycheck-to-paycheck, so one major health issue could push them into bankruptcy.
Shockingly, approximately three-quarters of individuals filing for bankruptcy because of medical debt have health insurance. The majority of them are middle-class, well-educated homeowners. Up-to-date insurance policies have so many loopholes, copayments, and deductibles that a serious illness or injury could bankrupt even the insured person. Many people who lost their jobs during the recent recession also lost their health insurance.
Personal bankruptcy under Chapter 7 involves liquidating your assets to settle your debts. Medical bills are viewed in the same manner as credit card debt and other types of unsecured debt. This means that they will be completely discharged after you file for bankruptcy.
If you file for Chapter 7 bankruptcy, your debts will be discharged but you won’t be able to file again for eight years. If you’re still receiving medical treatment, it’s best to wait until that is finished before filing for bankruptcy. And after bankruptcy, you should avoid taking on any new debt.
Chapter 13 bankruptcy, also known as “reorganization”, does not eliminate your debts like Chapter 7. Instead, it creates a plan to repay certain debts over a period of 3-5 years at reduced rates. Secured debts, such as home mortgages and car loans, are paid off first, followed by “priority” debt like federal and state taxes and child support. Last on the list are unsecured debts (like medical bills). Any debt that is left over after the completion of the plan is usually discharged.
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Speak To An Experienced Bankruptcy Attorney About Your Medical Bills
If you are searching for dependable “bankruptcy lawyers near me” who can help you understand how the bankruptcy process might work for your unique situation, contact us today! The Law Firm of Joseph Lassen is more than willing to facilitate and help you decide whether bankruptcy may be the best course of action for you.
Contact us for a free initial consultation so your financial options can be discussed without any obligation on your part.