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Bankruptcy may help those with medical bills find debt relief

| Oct 23, 2018 | Debt Relief |

Suffering from a medical emergency can be a major setback for any Louisiana resident. A person may have to face long recovery times, medical treatments and pain associated with the condition, and the situation could also lead to financial hardships. Lost wages could result from time away from work, and medical bills may continue to accumulate. Soon, someone in this type of predicament may need serious debt relief.

In particular, many people consider bankruptcy as a way to address their medical debt. While a specific “medical bankruptcy” does not exist, Chapter 7 or Chapter 13 could help address outstanding balances associated with medical care. Of course, either of these proceedings would involve all of one’s debts. This means that someone looking to address only their medical debt and not credit card debt or other liabilities would not find that option with bankruptcy.

Still, when a person does face substantial medical debt, it is likely that credit card balances and other forms of debt will also become issues. With Chapter 7, one may have the ability to obtain quick relief from their medical bills because it typically only takes three to five months to complete this process. Chapter 13 takes longer to complete, but rather than liquidating assets to address medical debt, the individual could create a repayment plan than spans over three to five years and requires court approval before implementation.

Though the amount of time it takes to complete the bankruptcy proceedings may play a role in a person’s decision to file, it is important to remember that there are certain eligibility requirements that must be met for each type of bankruptcy. If Louisiana residents believe that this type of debt relief option could help them address their medical costs, it may be wise to gain more information about each. Consulting with knowledgeable attorneys could allow interested parties to gain reliable insight into their particular cases.

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