Medical care in the U.S. is extremely expensive. In order to go through necessary treatments for injuries, cancer, and other health problems, many are burdened with medical bills they are unable to pay back. All too quickly the medical bills will be sent to a third-party collection agency and that is when the phone calls begin. If you have been placed in a difficult financial situation due to medical bills, you might want to consider filing for bankruptcy and getting a fresh start.
Can You File Bankruptcy on Medical Bills in Ohio?
Not only can you file bankruptcy on medical bills in Ohio, but it is one of the most common reasons people file in the first place. Even if you are lucky enough to have health insurance, it does not cover everything and there are high deductibles to consider as well. While a payment plan may work for some, others find themselves buried so deep in medical debt that a payment plan will not provide the relief they need.
Filing for Chapter 7 or Chapter 13 bankruptcy will allow you to clear your medical debt. Medical debt may include charges from doctors, hospitals, lab facilities, and other medical care related expenses. If you file for Chapter 7 bankruptcy, you are petitioning the bankruptcy court to clear most of the debts you owe. To clear the debts, the court will appoint a bankruptcy trustee who will sell your assets and distribute the proceeds to your creditors. If you file for Chapter 13 bankruptcy, the bankruptcy court will set up a repayment plan to pay back all or part of your debts over a certain period of time. The amount of the repayment will depend on things such as your income, the amount of debt, the type of debt, and what property you own.
Chapter 13 bankruptcy lets you keep your property because you have sufficient income to make a repayment plan work. In Chapter 7, the sale of assets is necessary to satisfy creditors. There are, however, exemptions that you can claim. The exemptions prevent creditors from reaching into certain assets. Chapter 7 will clear your debt and do so in a timely fashion. In fact, debts could be discharged within three months of filing bankruptcy. With Chapter 13, things get a bit more complicated and the process is often much longer. You do, however, get to keep your property which is a big benefit of Chapter 13 bankruptcy.
Miami Valley Bankruptcy Attorneys
It is unfortunate that so many people across Ohio will be put under extreme financial pressure due to mounting medical expenses. The harsh reality is that many cannot afford the medical care they need, even if they have insurance. If you have medical bills that you are struggling to pay, contact Miami Valley Bankruptcy. Our team of dedicated bankruptcy attorneys is here to help you get out from under that financial burden of medical bills. Contact us today.