A bankruptcy discharge typically eliminates medical debt from doctor bills, prescription costs and other costs arising from an injury, illness or disease. It does not matter how cautious your financial planing may be; a serious medical problem that is not covered by medical insurance can eliminate your savings and leave you insolvent.
Pittsburgh is fortunate to have excellent physician, specialist and hospital availability. However, our medical technology and professionals can be costly. If you find that health care debt has left you short on cash, it is time for you to talk to a Pittsburgh bankruptcy attorney about your options.
In a chapter 7 bankruptcy case, unpaid medical bills are almost always eliminated. In chapter 13 cases, where debtors enter into plans to repay some or all of their debts over a period of several years, medical debt may be paid in part through a plan with the remaining balance discharged at the conclusion of the plan.
Do not access your 401(k) or IRA to pay medical debt before talking to an experienced bankruptcy lawyer. In most cases, your retirement assets are entirely exempt in a bankruptcy case. That means that you can generally erase your medical bills without drawing down your retirement savings.
Do not enter into a repayment plan that you don’t believe will be feasible. Remember, as much as you may want to settle your debts, you will still need to pay your mortgage or rent, pay your utilities and purchase groceries, gasoline and other necessities. Before you commit to an unreasonable repayment plan, talk to an experienced debt lawyer to see whether some other strategy might produce a better result.
Most people do not want to file a bankruptcy case. For many who have conscientiously repaid their debts their entire lives, being faced with medical bills that they have no ability to repay can be frustrating. Many proud, honest but unfortunate people are resistant to the bankruptcy process. You do not need to face the challenge of medical debt alone. To discuss all of your options, call for a free consultation with an experienced debt lawyer today.