Are you struggling with medical and hospital bills?
Do you know what the leading cause of bankruptcy is in Arizona and throughout the United States? If you’ve ever experienced a serious illness or injury, you probably know the answer: medical debt. Unexpected medical emergencies can cost you and your family thousands of dollars, require you to miss work and lose income, and cause you to fall behind on your other life obligations. Bankruptcy can help you address your unpaid medical bills, as well as credit cards and other personal debts you may have incurred during your recovery period.
You may not realize all the types of bills that fall in the category of “medical debt.” It’s not just your unpaid balances with primary physicians and from the hospital- bills from your dentist, plastic surgeon, mental health professionals, and more. All of your medical debts are unsecured, making them generally dischargeable in bankruptcy.
Medical Debt and Bankruptcy
When you declare bankruptcy, for the most part, you don’t pick and choose which debts are discharged in your bankruptcy. If you file bankruptcy due to medical debt, other unsecured debts like credit cards, unpaid utility bills, repossession deficiencies, and even some taxes are among the debts that will also be discharged. This gives you a fresh start going forward, and an opportunity to rebuild your credit.
Just like utility providers and other creditors whose debts you discharge in bankruptcy, your medical providers may stop giving you treatment if you file bankruptcy. If you have a rare condition, or live in an area without access to other doctors, you should keep this mind when deciding which chapter to file. Your doctor can continue treatment if you pay your medical bills in your bankruptcy payment plan. Otherwise, you may need to pay your medical bills despite them being discharged in Chapter 7 to resume treatment. Don’t delay. Call our AZ Medical Bill Lawyers now.