Using Bankruptcy Medical Bills To Your Advantage

Nowadays, medical treatments are priced five times more than they are used to be, even when you acquire them in the less expensive and less popular hospitals. Although people tend to avoid going to hospitals as much as possible, especially those who are without health insurance, there are circumstances that still lead them to the hospital doors. If truth be told, filing for bankruptcy medical bills is not a bad thing. In fact, it is considered to be an ideal financial option for those who are unable to pay their medical bills. Here’s how you can make the most out of bankruptcy.

Tip #1- Ask for the detailed hospital expenses. Even in the age of computers, it is still possible to make mistakes. Hence, it is important to ask for an itemized list of your hospital bills. This way, you can ensure that you’re paying only for the medical treatments that you have been given. You can also reduce the cost that the government has to pay once you file for bankruptcy.

Tip #2- Don’t be hesitant to ask for help. People tend to be scared of filing for bankruptcy. What they don’t know is that it is one of the best options when you’re faced with steep medical bills. You will no longer have to work on being qualified for various organizations and charity cases. In fact, you will no longer have to dread picking up the phone or receiving letters from the hospital or your creditors. Once you file for bankruptcy medical bills, most of your debts will be cleared, allowing you to live with a clean slate once again. However, it is important that you ask for advice and assistance from bankruptcy lawyers. They can help you keep the bankruptcy process as smooth-sailing as possible. They can also help you determine the right steps to take after bankruptcy has been filed.

You don’t have to be afraid of bankruptcy medical bills. It is a good option to turn to when you’re unable to pay hospital bills.

M. Baylor, of Hurst Texas, grew up with both parents as doctors. Laws concerning medical care governed his fascination as he grew up. As a paralegal in Allmand & Lee, Marcus maintains an informative blog about medical bill debt, medical litigation, and the latest in the health care reform bills and government programs.

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Bankruptcy Can Eliminate Medical Debt

The cost of medical care continues to rise and the inevitable result for countless individuals and families is financial ruin. Despite all the talk of sweeping changes in legislation and universal health care for all, there is currently little or no relief for many of these people. Fortunately, there is a way to get out from underneath crushing medical debt.

In nearly all cases, filing bankruptcy will eliminate medical debt. When deciding if bankruptcy is the best way to deal with your medical bills, timing is the most crucial element. Since medical issues are unique to each person, the best advice is to consult a qualified bankruptcy attorney in your area.

Generally, during an initial consultation, the attorney will determine, first, whether your situation warrants bankruptcy and, second, which type of bankruptcy best fits your circumstances. The two most common types of bankruptcies individuals can file are Chapter 7 and Chapter 13.

In Chapter 7 bankruptcy, medical bills are typically discharged and you will be relieved from your overwhelming medical debt. Once the bankruptcy petition is filed, all billing departments for medical providers must stop calling you, writing you, or taking any other steps to collect a debt from you. If the medical provider has assigned or sold the debt to a collection company, the collection company must also stop all attempts to collect the debt.

Medical bills in Chapter 13 bankruptcy are treated similarly to the way they are treated in Chapter 7 bankruptcy, in that medical providers and debt collectors must not engage in any attempt to collect the debt. Additionally, debtors are prohibited from reporting to a credit agency or contacting third parties regarding the debt.

Bankruptcy Can Be Used to Release Liens

Finally, if you have been sued by a medical provider or a debt collector for medical bills and a judgment has been entered against you, you need to know that the judgment functions as a lien against any real estate you own. This can affect your ability in the future to sell your property or refinance an existing loan. This lien can be “avoided” inside a bankruptcy. In other words, the bankruptcy judge has the power to make the lien go away forever. All judgments, including judgments for medical bills, can also cause your wages to be garnished and/or your bank account to be frozen. If this has already happened to you, you should seek legal counsel immediately. If this hasn’t happened yet, seeking legal counsel right away can prevent it..

To summarize:

Medical bills can be discharged under a chapter 7 bankruptcy and chapter 13 bankruptcy.
Due to the nature of medical care, each person’s situation is unique and you should consult an attorney immediately if you are considering bankruptcy.
Filing for bankruptcy will stop all collection activity and give you a fresh start.
If you have been sued and a judgment has been entered against you, the judgment serves as a lien against real estate.
If a judgment has been entered against you, your wages and bank account are subject garnishment.
Contact a bankruptcy attorney to discuss your options and how bankruptcy can help you get out from under your medical debt. Remember, medical debt causes more than 60% of all bankruptcies. You are not alone.

Sam Marks graduated from Drake Law School after completing undergraduate work at the University of Iowa. After passing the bar, he developed a general law practice that included work in criminal, family and juvenile law. As time passed, he began focusing specifically in the areas of bankruptcy and consumer protection. Sam is frequently asked to provide lectures to attorneys, business professionals and the public on the topics of bankruptcy and consumer protection and how these issues affect other aspects of the law. He enjoys these presentations and the opportunity they provide to discuss current events the legal system.

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