Many of our bankruptcy clients are overwhelmed by unexpected medical bills. We understand. Unplanned emergency costs can quickly spiral out of control. Our bankruptcy attorneys want you to know that you have legal rights and options. We understand that anyone can find themselves suddenly drowning in unforeseen medical bills.
Medical debt is an unsecured debt and can be discharged. It is classified as “general unsecured debt”, meaning it is the lowest priority of debt to get paid if any creditors do receive money in a bankruptcy filing. Medical bills are a major cause of bankruptcy and the courts do not dispute that people who face financial ruin because of medical bills deserve a fresh start.
It is important to note that medical debt must only be for services received before your case was filed. As soon as your case is filed all collections for the medical debt will stop. If you are filing bankruptcy and making payments on a medical debt, late charges, penalties, attorney’s fees and interest associated with the medical debt can be discharged.
If you have a large amount of medical debt in your bankruptcy, your trustee will want to know if it is for an injury you can recover money in a law suit for, if so your bankruptcy lawyer can assist you with this process. Bankruptcy laws provide specific exemptions for personal injury lawsuits .
The bankruptcy attorneys at King & King can help you have your medical bills “discharged,” or completely wiped out. Call us today at 404-524-6400 or visit us our website for more information.