How Can Bankruptcy Help With Medical Debt?
If you or a family member experiences a serious injury or illness, you may end up with financial strain in addition to health concerns. High medical bills are one of the main factors that drive Indiana and Kentucky families into debt. If you accumulate overwhelming medical debt, filing for bankruptcy may be a valuable opportunity to pursue. The Law Office of Allan E. Dunaway PLC, can evaluate your financial situation and help you develop an effective debt relief solution. Our goal is to manage your financial state so that you can focus on your health or the health of your loved one.
Do you face overwhelming medical debt? Call the Louisville Law Office of Allan E. Dunaway PLC, at 502-785-1005 to discuss your case with a qualified bankruptcy lawyer.
Can I Eliminate My Medical Debt?
Generally, yes! Medical debts in bankruptcy are usually classified as unsecured debts. This classification allows them to be discharged during bankruptcy. In order to completely eliminate your debt, you will need to pass the Chapter 7 “means test” (a calculation that determines whether your income level prevents you from being able to repay your debts). If you do not pass the means test, you cannot file for Chapter 7 bankruptcy and may not be able to discharge all of your medical debt. However, you may be able to manage your medical debt with Chapter 13 bankruptcy. Also, if a medical provider has obtained a court judgment and recorded the judgment as a lien then the decision to file a Chapter 7 versus Chapter 13 is determined by certain considerations regarding the effectiveness of that lien.
How Can Chapter 13 Help With Medical Debt?
While Chapter 13 does not completely erase your debt, it can still be a valuable tool for managing medical debts. Under Chapter 13, you can reorganize your debts into a reasonable three-to-five-year repayment plan. Under Chapter 13, you may be able to have a portion of your debt discharged depending upon the amount of medical debt and your income. If you file for Chapter 13, we always seek the most favorable repayment plan possible under the law.
Contact Us For Experienced Representation
Medical issues are upsetting (and scary in many circumstances where the prognosis is uncertain) enough without the added pressure of financial concerns. Allow attorney Allan Dunaway to carefully evaluate your circumstances and give you the advice to navigate your financial future. Call our firm at 502-785-1005 to schedule a free case consultation or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.