Medical Bills and Chapter 7 Bankruptcy

People often fall into financial difficulties due to medical bills. Many people who file for bankruptcy do so after receiving costly medical care. The significant expense of medical care, even for those with health insurance, can be enough to send people who are financially stable spiraling into uncontrollable debt. Not only is hospitalization expensive, it also causes a person to miss work, meaning they do not receive any income for the remainder of their hospital stay. This causes debt to accumulate rapidly.

If you are unable to pay your medical debts, the Cedar Rapids Chapter 7 bankruptcy lawyers of Hong Law, PLC, can help you through the process of filing for Chapter 7 bankruptcy, which might lead them to be eliminated. Contact us at (319) 294-5853 for a confidential case consultation.

How Does Chapter 7 Bankruptcy Help Alleviate Medical Debts?

A successful Chapter 7 bankruptcy filing can lead your unsecured debts to be discharged, or forgiven. Unsecured debts are those that are not backed by any kind of physical property. If you are unable to pay these debts, rather than taking your belongings, creditors can sue. Medical costs are unsecured debts, meaning if you successfully file for Chapter 7 bankruptcy, they are forgiven and you can begin to move on with your life.

Qualifying for Chapter 7 bankruptcy requires you to pass the means test. This test weighs your average income over the last six months against the average income for similar households in the state. If you have been hospitalized for some time, you may have suffered a drastic drop in average income, increasing the likelihood that you will qualify based upon the means test.

Contact Us

If you have been weighed down by medical debt, the Cedar Rapids Chapter 7 bankruptcy lawyers of Hong Law, PLC, can help you through this difficult period of your life. Contact our knowledgeable bankruptcy attorneys at (319) 294-5853 to learn more about how we can serve you today.