It is an unfortunate event when you unexpectedly incur an injury or illness. What makes matters worse is if you have to worry about your medical bills when you already have a significant amount of debt. This is where filing for bankruptcy may be a critical move. Follow along to find out whether bankruptcy can clear your medical debt and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can guide you through this difficult time.
Is it possible for bankruptcy to clear my medical debt?
Notably, medical debt is considered a type of unsecured debt. Meaning, this is a debt that is not connected to a specific piece of property, like a house or a car, and is therefore eligible to be released upon filing for bankruptcy.
With that being said, the medical debt you incurred before you filed for bankruptcy will be eliminated. This may even include the medical bills that you do not receive until after you submitted your bankruptcy filing, so long as your treatment took place before this filing.
How can a Rockland County bankruptcy attorney guide me?
Before all else, a talented Rockland County bankruptcy attorney will determine whether a Chapter 7 bankruptcy or a Chapter 13 bankruptcy is best for clearing your medical debt. For one, a Chapter 7 bankruptcy does not have a limit on how much relief you can receive for your medical bills, and there is no repayment plan required. However, you will be required to pass the Chapter 7 Means Test to see if your monthly income is less than New York State’s median income and/or if your disposable income does not cover your expenses.
On the other hand, a Chapter 13 bankruptcy will lump your medical debt with your other debt, and you will ultimately have to pay a portion of it back with your required repayment plan. With this, there is an unsecured debt limit of approximately $419,275.
In the end, an attorney can help you navigate through the following situations:
- How to keep up with covering your health insurance during your bankruptcy proceedings.
- How to keep up with covering your Medicaid and/or Medicare during your bankruptcy proceedings.
- How to handle scheduled doctor’s appointments, surgeries, treatments, etc. during your bankruptcy proceedings.
- How to handle the potential garnishing of your wages to cover your medical bills during your bankruptcy proceedings.
- How to handle collection calls from your unsecured creditors during your bankruptcy proceedings.
- How to handle personal loans for your medical bills during your bankruptcy proceedings.
For more information on how to relieve yourself of your medical debt, you must not hesitate in speaking with one of the experienced attorneys at The Law Offices of Allen A. Kolber, Esq. We await your phone call.