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Millions of Americans struggle to pay their medical bills. Unsurprisingly, most bankruptcy filings are due to medical debt. You may be wondering if bankruptcy can help if you have insurmountable medical debt. Our New York bankruptcy lawyers will answer your question and provide information about which bankruptcy chapters to consider to eliminate medical debts.
What Happens to My Medical Debt After Filing For Bankruptcy?
A bankruptcy filing gives you a "fresh start." This means that most, if not all, of your debts will be discharged. Medical debt is treated as any other unsecured debt in bankruptcy. If you file for Chapter 7 bankruptcy, your medical debt will be discharged along with your other debts, such as:
- Personal loans
- Past-due utility bills
- Credit card debt
- Back rent
The Benefits of Chapter 7 for Medical Debt
A bankruptcy filing offers an automatic stay. An automatic stay prevents creditors from pursuing collection actions against you. This includes wage garnishments, foreclosures, and repossessions. An automatic stay will also stop most lawsuits and contact from creditors.
Another benefit of filing for Chapter 7 bankruptcy is that you may be able to keep certain properties. In New York, you can exempt (or protect) up to a certain dollar amount in equity in your home, depending on what county you live in. You can also exempt a vehicle depending on its worth.
Begin Your Journey to Financial Freedom Today
Bankruptcy may be the best solution if you're struggling to pay it. The experienced bankruptcy legal team at Jacovetti Law, P.C. will guide you through the process and help you determine the best course of action for your financial situation.
If you need assistance with your bankruptcy case, contact us today at (516) 217-4488 to schedule a case consultation!