It is an unfortunate statistic that a majority of individuals go bankrupt due to their mounting medical debt. Generally speaking, this is thanks to the country’s high cost of healthcare. But what’s worse is if you require extensive medical treatments to treat a serious health condition, all while missing out on anticipated income. Follow along to find out how a bankruptcy filing might relieve you from your medical debt and how a proficient Louisville, Kentucky Chapter 7 bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you through this process.

How might a bankruptcy filing help relieve me from my medical debt?

Of note, medical debt is a type of nonpriority unsecured debt. This means that your responsibility to pay off your medical bills may be discharged upon filing for Chapter 7 bankruptcy. It is worth mentioning that the same does not apply to a Chapter 13 bankruptcy filing, though.

Understandably, you may be preoccupied with reaching a full recovery from your serious health condition. So the last thing you may want to worry about is the complex and extensive process that comes with a bankruptcy filing. However, the benefits may outweigh the serious time commitment. That is, in addition to discharging your medical debt, a Chapter 7 bankruptcy filing may relieve you in the following ways:

  • Your bankruptcy filing may bar phone calls and other collection activities from medical bill collectors.
  • Your bankruptcy filing may place an automatic stay on your home and bar its foreclosure.
  • Your bankruptcy filing may eliminate other dischargeable debts you carry (i.e., credit card debts, personal loan debts, past due utility bills, etc).

When is the best time to submit a bankruptcy filing?

Timing is essentially everything when it comes to your Chapter 7 bankruptcy filing. This is especially true if you are receiving ongoing treatments for your serious health condition.

This is because, on the date of your bankruptcy filing, your current medical debt and all your other qualifying debts will be included in your discharge. In turn, though, any incoming medical bills will not be included in this discharge. This is unless you are being billed for medical treatments you received before the date of your bankruptcy filing.

This is all to say that any future medical treatments will not be covered and you will need to take full responsibility in paying them off. So if you have scheduled a serious medical procedure, as an example, then it may be in your best interest to wait until afterwards to submit your bankruptcy petition.

At the end of the day, you must not take any chances when it comes to your Chapter 7 bankruptcy filing. So please retain the services of a talented Louisville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center today.