Bankruptcy Could Be the Solution to Your Medical Debt

Medical debt is one of the biggest financial burdens faced by individuals and families. With healthcare costs continuing to rise and with some medical expenses not covered by insurance, it’s not surprising that many people find themselves struggling to pay their medical bills. Fortunately, bankruptcy could be a viable option for those grappling with medical debt.

In this blog post, we’ll explore how filing for bankruptcy can help relieve medical debt and how a bankruptcy lawyer can provide essential guidance through the process. If you’re being sued or garnished by a medical creditor, bankruptcy can put a stop to both.

Understanding Bankruptcy and Medical Debt

Bankruptcy is a legal process designed to help individuals and businesses relieve overwhelming financial debt. Medical debt is included in the list of debts that can be discharged through bankruptcy. Discharge means you don’t legally owe the debt and the creditor is legally prohibited from trying to collect.

Chapter 7 and Chapter 13 bankruptcy are the two most common types of bankruptcy filed by consumers with medical debt. A bankruptcy lawyer can help you understand which type of bankruptcy would be best for your situation. A bankruptcy attorney will also give you guidance on which assets you can keep, which you can surrender back to the lender, and what happens to liens.

Benefits of Hiring a Bankruptcy Lawyer

Hiring a bankruptcy lawyer is an essential step when considering filing for bankruptcy. A bankruptcy lawyer can help you understand the bankruptcy process, including the different types of bankruptcy, the requirements for filing, and the effects bankruptcy has on your credit score.

They can also guide you through the bankruptcy proceedings and represent you in court if necessary. A bankruptcy lawyer can even negotiate with your creditors to reduce the amount of debt you owe.

The Bankruptcy Filing Process

Before filing for bankruptcy, you must first complete mandatory credit counselling. You will then need your attorney to prepare and file a bankruptcy petition with the court. Once the court receives your petition, it will issue an automatic stay, which prevents creditors from taking further collection actions against you.

During the bankruptcy proceedings, the bankruptcy trustee will review income, assets, and debts. He or she is appointed let the bankruptcy judge know if there is a reason you’re not entitled to a discharge of your debts. Your bankruptcy attorney, if necessary, will present arguments on your behalf during this process. Denials of discharge are rare.

Once the court approves your bankruptcy discharge, your medical debts will be wiped clean, and you can start rebuilding your finances with a clean slate.

What to Expect After Bankruptcy

After bankruptcy, it’s important to anticipate a temporary drop in your credit score. However, it’s crucial to note that filing for bankruptcy does not prevent you from obtaining credit in the future. Many lenders will see that you have filed for bankruptcy and put into consideration that you’re now a better credit risk because you have discharged some or all of your past debts and, further, are ineligible for another bankruptcy discharge for several years.

Numerous individuals who have gone through bankruptcy have successfully rebuilt their credit scores by taking proactive measures. These measures include paying bills on time, opening a small credit account to demonstrate responsible credit management, and maintaining a positive payment history.

Seeking guidance from a knowledgeable bankruptcy lawyer can also provide invaluable assistance in navigating the process of rebuilding your credit after bankruptcy. Remember, patience and perseverance are key when embarking on this journey towards financial recovery.

Move Forward With Confidence

One effective way to move forward with confidence after filing for bankruptcy is by connecting with a helpful and reliable legal representative. A lawyer who specializes in filing for bankruptcy can be a major asset as you navigate important paperwork, court proceedings, and present your case with clarity. Additionally, a lawyer can answer your various questions even after declaring bankruptcy so that you can have added peace of mind.

Bankruptcy can provide relief to those struggling with overwhelming medical debt. By hiring a bankruptcy lawyer, you can navigate the complex bankruptcy process and emerge with a fresh financial start. While bankruptcy isn’t always the best solution for medical debt, it’s an option that should be considered when other options have failed.

If you’re dealing with medical debt and are considering bankruptcy, don’t hesitate to reach out to a bankruptcy lawyer at Wiesner & Frackowiak, LC for guidance and assistance. They are a local firm servicing both Kansas and Missouri clients. With an office in Overland Park, the firm is conveniently located just off 93rd and Metcalf.

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