Are you drowning in medical debt? If the frequency and cost of the medical bills that are filling your mailbox after a prolonged illness or emergency are overwhelming, you are not alone. Even those with health insurance find that the cost of health care is steep, and that cost could have a severe impact on even the most financially stable South Carolina families.
Fortunately, you have options. You do not have to struggle with creditor harassment and missed payments forever, but can seek relief by filing for bankruptcy. Medical debt is eligible for discharge through bankruptcy, which means that this legal choice offers you a way to get rid of these bills and debts forever.
How bankruptcy deals with medical debt
Bankruptcy allows for the discharge of certain eligible debts. According to the United States Bankruptcy Code, this process releases the debtor from personal liability on that balance. This means the following for you and your medical debt:
- You are no longer legally required to pay this debt.
- This discharge is permanent, even after you emerge from bankruptcy.
- Creditors may not attempt to use any means to collect on this debt.
The discharge of eligible debts allows you to leave the bankruptcy process with peace of mind regarding medical bills.
Which chapter of bankruptcy is right for me?
Medical debt is dischargeable through both Chapter 7 and Chapter 13, but the actual timing of the discharge depends on the particular chapter. The choice that is best for you depends on various factors, including income, other types of debts you may owe and your assets.
Chapter 7 is a process that is complete in a matter of a few months, yet not everyone is eligible for this option. If ineligible, you have the option to pursue Chapter 13 protection, a process that can take three to five years. Either way, you will complete the process with most, if not all, debts eliminated or reduced.
Assert your rights; protect your future
Many people do not file for bankruptcy because of misinformation and the supposed stigma regarding the process, even when it could be of great benefit to them. By seeking full understanding of the options available, you can make a choice that gives you the best opportunity for a fresh start and a strong financial future. You may feel like you are underwater with your medical bills, but there is a lifesaver available to you through bankruptcy.