Arizona medical debt attorneys
Affordable BANKRUPTCY Lawyer Services in ARIZONA
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.
Discharging Medical Debt in Phoenix
When you have unpaid medical bills and your creditors want payment that you can’t afford, you may have limited options available to you. You may be able to work out an alternative payment plan with your doctor. You may be able to obtain a loan to pay your doctor, or debt settlement may be a feasible option for you. However, bankruptcy is the strongest protector against most forms of debt.
As much as pride may stop you from declaring bankruptcy, it won’t do anything to stop creditors from calling you day in and day out- before proceeding with more severe collection methods. It is usually more ideal to plan out your bankruptcy before your employer has been served with a writ to garnish your wages, rather than after. Medical creditors may get more creative than typical creditors, using methods such as a levy on your tax return. The Automatic Stay will stop your creditors from either initiating or proceeding with these collection methods.
Medical Debt Strategies Through Bankruptcy
So how else is bankruptcy beneficial over the other strategies to address medical debt? Bankruptcy eliminates all of your unsecured debts, not just those stemming from medical bills. Therefore, you will be protected from repossession, foreclosure, wage garnishments, and more while your case is active. Plus, bankruptcy gives you a financial clean slate so you can begin taking steps to improve your credit. Call today. (480) 833-8000. Learn more about an Arizona Medical Bill Bankruptcy.
Eliminate Medical Debt and Start Rebuilding Your Credit
The impact that bankruptcy has on someone’s credit varies on a number of factors, including the amount and types of debt, whether the debt is discharged in bankruptcy, the filer’s previous credit score, and more. Typically, someone with a high credit score sees a large drop upon filing. Someone with a low score may see no effect, or even a small increase. Each bankruptcy is different.
Many people assume that they will never be eligible for financing and lines of credit after declaring bankruptcy. This is completely untrue. While you will be disqualified from many types of home loans for 2 years after your date of filing, you will receive offers for new credit cards and lines of credit once your case is discharged. Some lenders work with bankruptcy clients and can provide financing for assets such as a car as soon as the day after your case is filed.
All of these new credit opportunities also give you the chance to improve your credit score. Plus, timely payments on all your monthly installments slowly and surely boost your credit score. Also, opening a secured credit card through your bank if you are uncomfortable with standard credit cards immediately after bankruptcy. Thus, filing bankruptcy using a Zero Down payment plan, your payments are credit reported and help rebuild your credit. Out $0 down bankruptcy option reports all of your payments and improves your credit score. Contact us for more information.
Medical Debt Bankruptcy FAQs
ARIZONA Medical debt frequently asked questions
Hospital Debt and Bankruptcy
Affordable BANKRUPTCY Lawyer Services in ARIZONA
Stop the Collection Efforts of your Medical Providers
Missing enough payments on your medical debt, the hospital and/or doctors may begin pursuing more aggressive methods of collection. Thus, your medical creditor may seek a money judgment against you. Judgements have a negative impact on your credit. Plus, judgements quickly lead to garnishments. They can also use a money judgment to obtain a garnishment on your wages. You may be charged additional legal fees and interest when it has gotten to this point.
An experienced bankruptcy lawyer will help you avoid the negative credit effects and reduction in income caused by your medical creditors pursuing a money judgment and wage garnishment. If a judgment or garnishment is imminent, our attorneys file your case in just a few hours in an emergency filing. Therefore, using just your identification information and income information, your attorney files a skeleton petition. This skeleton petition instantly enacts the Automatic Stay. Thus, stopping your creditors from their chosen collection methods.
One unique thing about medical debt is that it often doesn’t appear on your credit report. Thus, including all of your medical debts in your bankruptcy is difficult. A creditor mailing matrix is typically drafted using your credit report. Therefore, omitting any of your medical providers could mean needing to go back and amend your bankruptcy in the future. A careful and thorough attorney makes sure that all of your debts are included in your petition, including medical debts that haven’t made it to your credit report yet. Contact our experienced Medical Debt Attorney for assistance today.
Contact Our Arizona Hospital Debt Lawyers Today!
If you have medical debt looming, don’t wait until it’s too late to take charge of your financial situation. Being proactive and avoiding judgments and garnishments will make it easier to rebuild your credit after your case has been discharged. A well-planned and thought out case discharges your debts without negative consequences like your property being sold or your tax return being seized by the trustee.