ELIMINATING MEDICAL BILLS IN BANKRUPTCY
Ferguson & Ferguson
Attorneys at Law
Are you getting daily calls about overdue medical bills or liens from doctor’s offices and hospital? Have you incurred substantial medical bill debt? Medical bills continue to be one of the main reasons why consumers seek bankruptcy protection. Doctors, hospitals, and other healthcare providers are focused on collecting for their services. In addition to calling you constantly and sending threatening letters, they can file a lawsuit with the goal of obtaining a civil judgment against you. A judgment may allow them to garnish your wages, freeze your bank accounts and more. It may surprise you to learn that next to credit card bills, medical expenses are one of the leading causes of bankruptcy. We can help you file either Chapter 7 or Chapter 13 bankruptcy, giving you a chance to get back on your feet again.
What Happens to Medical Bills in Bankruptcy?
Whether you have a sudden illness, medical coverage lapse, or you needed a medical procedure that was not covered by insurance, you have options for taking care of medical debt. In bankruptcy, medical bills are considered general unsecured debts just like your credit cards. This means that medical bills don’t receive priority treatment and can easily be wiped out by filing for bankruptcy. When you file Chapter 7 bankruptcy, most medical bills will be completely eliminated. There is no limit to the amount of medical debt you can discharge in Chapter 7 bankruptcy. In Chapter 13 bankruptcy, medical bills are lumped together with your other general unsecured debts in your repayment plan. The amount you must pay unsecured creditors depends on your income, living expenses, and nonexempt assets. With Chapter 13 bankruptcy, you will pay what you can afford over three to five years. At the end of the designated time, any remaining medical debt is discharged.
Free Bankruptcy Consultation
If you are having financial problems because of unpaid medical bills, we can help. Call now for a no obligation, free consultation with one of our Decatur or Huntsville bankruptcy lawyers. To learn how we can help you reorganize or eliminate all your past medical bills, call 256-534-3435 or 256-350-7200.
Huntsville Office Location:
303 Williams Avenue SW
Huntsville, AL 35801
Decatur Office Location:
401 Lee Street, Suite 607A
Decatur, AL 35601