As more and more consumers file for bankruptcy, it is important to understand what the contributing cause might be. According to Los Angeles based bankruptcy law firm Recovery Law Group apart from credit card bills, the other major contributing factor to personal bankruptcy is huge medical bills. One can easily blame the rising cost of healthcare for financially ruining any person. Accumulation of medical bills has become one of the major reasons for an increased bankruptcy filing. In case a person loses their job and the medical bills keep on piling, the financial issues could be financially devastating for most people. Despite the presence of health insurance, disability insurance, and other government programs, many times the debt is overwhelming that bankruptcy is the only way to get out of the financial mess.
Can bankruptcy help cope with huge medical debts?
Many times, people can bounce back after a severe illness and recover from the financial problems they were facing. However, there are many who are unable to get back to work after an accident or illness and end up in heavy debt. With rising medical and credit card bills, harassment from creditors in the form of threatening phone calls and letters can be a big issue, as this can impact your health, job, and relationships. Bankruptcy is one of the best ways to not only stop collection actions by creditors but also getting rid of all unsecured debts like medical bills. Bankruptcy gives you a fresh start to rebuild your finances while getting rid of your debts.
In the case of Chapter 7 bankruptcy, medical debts are treated as unsecured non priority debts, i.e. in case the debtor is unable to pay for them using non-exempt property, the debt will be discharged. You will be surprised to know that there isn’t any limit to the medical debt which can be discharged. However, if you wish to have a successful discharge of your debts, you need to trust experienced bankruptcy lawyers as the procedure is quite complicated. The lawyers are well versed with rules and know-how and when the debts can be discharged. In case you are overwhelmed by medical debts and are looking for bankruptcy as a way to get rid of them, you can call 888-297-6023to schedule an appointment with experienced bankruptcy lawyers.