Many members of our community in Southern California are looking to bankruptcy to relieve financial problems with medical bills. If you have ever had a medical emergency without proper medical insurance, you know that medical costs are very expensive. Many people who are getting by on unemployment or low wages in the wake of the recession cannot keep up with the medical bills incurred by medical conditions or emergencies. It is a common problem for both young and old Americans. Fortunately, medical debt can be discharged in bankruptcy.
Our Riverside bankruptcy attorneys and Orange County bankruptcy attorneys deal with clients with medical debt on a regular basis. The good news is that medical debt, unlike a student loan or government debt, is dischargeable in bankruptcy. Medical debt can damage your credit just like any other unsecured debts. They can send your debt to a collections agency or law firm to collect outstanding balances if your insurance did not cover the costs incurred. The longer the uncollected debt stays on your record, the more your credit score will continue to deteriorate. There is no special category for medical debt that makes it less damaging to your credit. A Chapter 7 bankruptcy will discharge the medical debt and may resolve all other debts impacting your credit. Medical debt in bankruptcy is basically treated the same as other unsecured debt. It can be discharged in full with a Chapter 7 bankruptcy filing.
A recent report from CBS News, informed that 36% of young Americans (ages 19 to 25) are having financial issues with medical debt. If you or someone you know is in this situation, Chapter 7 bankruptcy may be the best solution to relieve medical debt. In emergency medical situations, medical debt may not have been avoidable. If you can no longer afford to pay your past due medical debts, contact Bankruptcy Law Professionals to see how we can help with the medical debt and any other debt you may be dealing with.
Bankruptcy Law Professionals can be reached at (855) 257-7671 to answer your questions about bankruptcy or set up a phone or in-person consultation.
