Even people with excellent credit and responsible financial habits file
for bankruptcy. Unforeseen life events like expensive divorces, the sudden
loss of a job, and a long-term illness can cause problems with debt that
only bankruptcy can solve.
One of the most difficult financial burdens to overcome is mounting medical
bills. With rising healthcare costs and a growing number of Americans
without sufficient health insurance coverage, countless people have found
themselves swallowed by medical debts they cannot repay. With large debts
like these, a person may feel helpless to ever get out of their situation.
People with good credit may see their credit score dip, greatly affecting
their financial health and future prospects. If payments are missed, they
may even face wage garnishments or other forms of collective action.
Wadhwani & Shanfeld understand that times like these can be difficult
and overwhelming. Fortunately, there are options for you. Because Congress
has deemed certain debts more important than others, not all debts are
treated the same way by bankruptcy. In the case of medical debts, which
are considered secured, they are treated as nonpriority debts and can
be discharged by bankruptcy.
If you have good credit but cannot pay off your medical bills, filing for
Chapter 7 bankruptcy may be the best solution to help eliminate your debt
and can result in the discharge of the entire amount you owe. Under Chapter
7 bankruptcy, there is no limit to the amount of medical debt that can
If you do not qualify for bankruptcy under Chapter 7, you may be able to
file for Chapter 13 bankruptcy, which will allow you to keep your assets
but will require you to pay back a portion of your medical debt through
a structured repayment plan. Any debt remaining after the repayment plan
will then be discharged.
In either case, your bankruptcy filing will provide an automatic stay that
will keep creditors from harassing you for payment while your case is
Of course, every situation is different. To learn which bankruptcy option
will best meet your individual needs, contact a Southern California bankruptcy
attorney from Wadhwani & Shanfeld. Our Board-Certified bankruptcy
specialists can guide you through the process and ensure that your filing
is completed as efficiently as possible.
To schedule a
free consultation, please contact our firm at (800) 996-9932.