BANKRUPTCY AND MEDICAL DEBT
Medical Debt Discharge AttorneyLong Beach, California - Los Angeles County - Orange County
Bankruptcy enables an individual to eliminate his or her debts.Credit card debt is not always the reason for bankruptcy.More than half of all personal bankruptcies involve substantial medical debts- many people in this country do not have health insurance or if they do, the coverage is limited.In addition, those over 65 years of age and single mothers make up a large percentage of those filing for bankruptcy because of medical debt.
Statistics show that 13% of those who file for bankruptcy do so because of medical expenses totaling over $10,000 - while 40% involve less than $5,000 and 20% are for expenses less than $1,000.
Medical Bill Collection Agencies - Many individuals would be happy to work out a payment plan for these expenses.However, instead of helping individuals, medical collection agencies would rather file lawsuits to collect the money.Hospitals and doctors, instead of giving their patients 150 days to pay the bill, turn over delinquent accounts to collection agencies after only 30 or 60 days.Today, many medical-related businesses sue for very small amounts instead of writing the debt off and giving the individual a break.
Chapter 7 Bankruptcy - Individuals who cannot afford to pay their entire bill can turn to bankruptcy.Chapter 7 Bankruptcy, the most common type filed, could eliminate ALL unsecured debt, including any medical bills.Once you file for Chapter 7 bankruptcy, you have to wait eight years to do it again, if necessary.
A Fresh Start - Bankruptcy helps individuals with limited income to eliminate their debt while allowing them to keep their property and future income. The Bankruptcy Code allows individuals to keep basic day-to-day assets (i.e. household goods, personal things) needed for a "fresh start" afterwards.Pensions, 401(k) plans, IRA's and retirement savings are not property of the estate and are usually exempt.
Exempt Property - California provides general amounts of exemptions that allow most people to keep most or all of their property.Exemptions protect real estate, personal property, insurance, retirement plans, pensions, etc.Your bankruptcy attorney can discuss these with you in detail.
Next Step - Filing for bankruptcy could be your answer to your enormous medical debt; it provides a complete elimination of all unsecured debts.Most importantly, it gives you a fresh start. Your bankruptcy attorney can help you come up with a plan that is best for you and your situation. Call our office for a free, no obligation initial consultation at 866-345-2440.
