Monthly Archives - October 2012

Bankruptcy: Digging Out From Medical Debt

Sometimes credit cards and possibly foolish purchases are not what has gotten you in over your head with debt. There are situations that are often out of your control and you then find yourself overwhelmed in bills you are unable to pay. Perhaps you lost your job and had to pick and choose what your unemployment check would pay for and you chose food, a roof over your head and gas in your car so you could find work. Or, maybe you or a family member got sick and you find yourself buried in medical bills. At this point, it may be time to call a Los Angeles bankruptcy attorney.

Being overwhelmed by medical bills they just cannot pay is one of the most common reasons that people declare bankruptcy in the United States. A variety of circumstances can lead you to need a Los Angeles bankruptcy lawyer for mountains of doctor and hospital bills that seem never ending. If you lost your job, odds are you lost your health insurance. Or maybe you thought you had good health insurance, but the insurance then refused to cover an accident or ailment, or only paid a percentage of the bills. You are then left with doctor and hospital bills that end up with collection agencies and damage your credit. You or your family member could not help getting sick, and because of that you have ended up in debt you never expected, despite being conscientious about your finances your entire life.

There is not a separate chapter classification for medical bankruptcy and you will still file as if you would if your problem was credit card debt. Your bankruptcy attorney in Los Angeles will explain that your options still would be Chapter 7 bankruptcy or Chapter 13 bankruptcy. With Chapter 7, your debts will be completely discharged and the slate will be wiped clean. With Chapter 13 bankruptcy, you will work out an arrangement to pay back what you can reasonably afford of your medical debt within 3-5 years.

No shame should be felt when having to file for bankruptcy for any reason. You are doing it to give yourself a fresh start and also improve your emotional well-being. Bill collectors calling you and sending letter constantly can be stressful for anyone. If they are medical bill collectors, that can be more stressful and also make you angry because you know the bills are only there because health and life were a concern. If medical bills are wreaking havoc on your life, call a bankruptcy lawyer in Los Angeles today to talk about starting over.