Medical Debt and Chapter 7 Bankruptcy
King and King bankruptcy attorneys, Saturday, 24 November 2012
Serious illness can happen to anyone at any time. In addition to medical bills, prolonged illness or injury can interfere with your ability to work. Missed work equates to less income, which additionally complicates the financial battle.
Medical problems and the debt that results from them are an extremely common cause for filing Chapter 7.
Fortunately, there are ways to deal with medical debt. If you are overwhelmed with expenses, Chapter 7 bankruptcy is one possible road to security. Chapter 7 bankruptcy is a form of personal bankruptcy, which clears out unsecured debts. The process generally moves fairly quickly. The average case takes as little as four months from the time of filing.
Bankruptcy courts classify medical debt as unsecured debt, which means that it may be discharged within the bankruptcy process. An unsecured debt is one that is not protected by a physical item of property as collateral. If you are unable make payments on unsecured debts, creditors cannot generally recover any items. However, they may be able to sue you and garnish your wages.
Within the Chapter 7 process, all eligible debts included in the filing should be discharged -- any legal obligation to repay is extinguished.
If you are overwhelmed by serious medical debt, contact King and King today. Our bankruptcy attorneys can help you sort through your finances and construct a solid debt-reducing plan. Call us at 404-524-6400.