If you’ve been unexpectedly injured or diagnosed with an illness, it’s likely that you’ve become familiar with hospitals. Even if you have insurance to cover some of the costs of your medical expenses, insurance won’t be able to cover everything. When you have an injury or illness that requires you to seek extensive medical treatment, your medical bills are likely to be extensive, as well.
Many people file for bankruptcy each year simply because they need to erase their medical debt. Thankfully, when filing for bankruptcy, medical bills are considered unsecured debts and they can be wiped away. A Terre Haute bankruptcy lawyer from Rowdy G. Williams Law Firm can help you assess your bankruptcy options and decide what route is best for you based on your situation.
Chapter 7 Bankruptcy
To qualify for Chapter 7 bankruptcy, your disposable income must be able to pass a means test. If you do qualify, then filing for Chapter 7 bankruptcy will wipe out all of your unsecured debts, which will include medical bills and credit card debt.
Chapter 13 Bankruptcy
When filing for Chapter 13 bankruptcy, medical bills are included as a part of your unsecured debts and will be considered in your repayment plan. Depending on your assets, income, and expenses, you’ll have to pay back a certain amount to creditors. Chapter 13 has debt limits, so if your medical bills exceed these limits, you may not be eligible for this type of bankruptcy.
An experienced lawyer can be helpful in determining whether Chapter 13 bankruptcy is right for you, because this type of bankruptcy can be more complex than Chapter 7.
Contact a Terre Haute Bankruptcy Attorney
Both Chapter 7 and Chapter 13 bankruptcies allow medical bills to be erased. However, Chapter 7 may be more desirable if your income qualifies you. An in-depth look into your situation can help determine what makes the most sense for you. What’s most important is knowing that you have options.