People used to assume, when they heard of someone’s bankruptcy, that the individual had gone crazy with credit cards. It’s certainly true that that has happened, and undoubtedly still does. However, that is not the primary reason that the majority of people are forced to file for bankruptcy protection now.
Today, 3 out of every 5 people declaring bankruptcy do so because of a mountain of unpaid medical bills. This is not simply a problem of the uninsured. About 10 million people who are covered by health insurance have accumulated medical bills that they are unable to pay off, according to NerdWallet. Each year, it seems that the co-pays for doctor’s visits and treatment are higher, as well as the deductibles. It doesn’t take long before the high out-of-pocket expenses stretch a tight budget beyond the breaking point. Most families cannot afford an annual out-of-pocket expense of $5,000 to $10,000.
Many expenses can be put off. A vacation can be canceled, but a heart attack demands immediate, expensive, ongoing care. It’s estimated that 1.7 million people will file for bankruptcy protection. However, about 20% of those aged 19-64 are struggling daily to pay medical bills, but are not yet at the point of having to consult a Bankruptcy attorney in Wichita.
Chapter 7 Bankruptcy and Medical Bills
Once a Chapter 7 case has been filed, an automatic stay will immediate stop any lawsuits or collection efforts. When the court issues a discharge order at the conclusion of the court process, all medical debts will be wiped out. No payments to creditors will be required.
Chapter 13 Bankruptcy and Medical Bills
An automatic stay will also go into effect when Chapter 13 bankruptcy is filed. However, not all medical bills will be discharged. Chapter 13 is usually filed by someone who is trying to save their home from foreclosure. It involves a court-sanctioned repayment plan to all creditors, so some portion of the medical debt will probably have to be paid and the remainder will ultimately be discharged.
Business Name are dedicated to assisting those in the Wichita, KS region who need a fresh start and financial freedom. Each Bankruptcy attorney in Wichita is very experienced with the complexities of bankruptcy law. Browse their website to learn more about the services offered and to schedule a consultation to discuss your options. You can also visit their Google+ profile for more information.
