Palmdale Medical Debt Lawyers
Medical costs have skyrocketed in recent years, and patients can incur considerable amounts of medical debt for even the most basic treatment. For more severe conditions like stroke or heart attack, the expenses could reach into the hundreds of thousands. Some of these costs could be covered by insurance, but patients are on the hook for the difference. As the bills pile up and become overdue, you might wonder if you have options to resolve medical debt.
Fortunately, there are strategies to ease the stress of medical debt, and you could even reduce your burden with other types of debt. It may be possible to handle matters directly, but bankruptcy might be another option. If you are facing crushing debt from medical bills, please contact Wadhwani & Shanfeld to discuss your situation. We can set up a consultation with a Palmdale medical debt lawyer who will describe how you may benefit, and some basics are useful.
Discharge Medical Debt in Chapter 7
An efficient, effective way to wipe out debt from medical bills is this type of bankruptcy, but you must meet strict eligibility rules. They focus on your income, and the threshold is the state median income level. If yours falls below this amount, you automatically qualify. If not, you must satisfy the Means Test. The focus is on your disposable income, which is what you have available after certain expenses.
While Chapter 7 does discharge medical debt, you may have to sell assets to pay creditors first.
Chapter 13 Reorganizes Medical Debt
If you do not qualify for Chapter 7 or have assets to protect, you might consider Chapter 13 for debt reorganization. Through this process, your medical debts and many others are combined into a monthly payment you can afford. Your debt repayment plan may take three to five years, but qualifying debts are discharged at the end of the process.
Unlike Chapter 7, you will not be forced to liquidate real estate or personal property to satisfy the debt to creditors. Once the repayment plan is complete, you will pay an amount equal to non-exempt assets.
Advice from an Lawyer
These descriptions are useful, but you need more than the basics to understand what type of bankruptcy is appropriate to address medical debt. Wadhwani & Shanfeld will explain details, so you can take advantage of numerous benefits. Our Southern California bankruptcy lawyers will also handle all steps involved with Chapter 7 or Chapter 13, including:
- Collecting financial information;
- Preparing and filing the bankruptcy petition;
- Attending the meeting of creditors for Chapter 13 cases; and,
- Representing you at the final hearing.
Get Legal Assistance from a Palmdale Medical Debt Lawyer
Proper medical care is critical to support your health, but it can be expensive. Insurance may not cover it all, so you should trust Wadhwani & Shanfeld to look into options for resolving debt. We can advise you on options to avoid bankruptcy, but we will support you when bankruptcy offers significant benefits. Please contact us today to schedule a consultation with a Southern California medical debt lawyer.