Many people might be surprised to learn that bankruptcy can help with high medical bills, which are some of the most common forms of high debt that people deal with. Not only are medical bills high, but they can last a long time when dealing with chronic medical conditions. Bankruptcy can be a viable option for escaping high medical bills and crushing debt. Talk to a Tullahoma bankruptcy lawyer to learn more.
Struggles of Dealing with Medical Debt
One of the most common forms of debt is medical debt, especially after the COVID-19 pandemic. Frustratingly enough, medical debt also tends to be higher and involves a high frequency of being contacted by bill collectors. Many people delay going to the doctor as a result.
Not only that, but those with health insurance may still incur high medical debt when insurance limits coverage to certain services. Some services requested by doctors may come with less coverage or no insurance coverage at all. This leaves people paying more out-of-pocket for medical services.
The same medical service can cost significantly more money when the service is out-of-network. Those without health insurance may not have to pay the same prices due to financial assistance offered by some medical providers. However, the costs of medical services can still be high for those without health insurance.
The scary thing is that medical debt can build up fast for those with chronic health conditions. Unlike other forms of debt, medical debt collection can be more aggressive. Bill collectors may call more often for medical debt. Over time, credit scores can be negatively impacted.
How Bankruptcy Helps with High Medical Bills
Filing for bankruptcy is a major financial decision. When deciding on medical bankruptcy, it can be helpful to weigh the pros and cons. The main con of bankruptcy is how your credit score will be impacted. Bankruptcy will lower your credit score for a long period of time, meaning less access to better financial deals.
However, not paying medical debt can also lower your credit score. When you find yourself stuck falling behind on medical debt, filing for bankruptcy might become the last option left. The pros of filing for bankruptcy include the following:
Erasing your medical debt
Protecting yourself from legal actions against you
Stopping wage garnishment
Preventing repossession
Your bankruptcy options for escaping medical debt are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy will erase all your unsecured debt within a few months. However, this includes taking all your financial assets except essential items like your car or clothes.
Chapter 13 bankruptcy will combine all your debt into one payment that you can afford each month. Paying off this newly combined debt can take years. Most of your income will go to paying off this debt for the next few years.
Contact Tom Bible Law Today
Dealing with high medical bills every month can be stressful. Feel free to call us at Tom Bible Law today at (423) 424-3116 for a consultation about your options for bankruptcy. Our legal team of Tennessee bankruptcy attorneys can help you start taking steps to escape your medical debt. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.