Recover Your Financial Health with Chapter 7 Bankruptcy for Medical Debt

by | Sep 16, 2020 | Bankruptcy

Medical debt is one of the most overwhelming types of debt there is, and one of the most common reasons why individuals file for Chapter 7 bankruptcy. On top of the physical, mental, and emotional toll of battling disease or dealing with an accident, you’re left with a massive hospital bill you simply can’t afford. Perhaps you’re looking at never-ending overdue payments due to yours or a loved one’s chronic illness.

No matter why you’re struggling with medical debt, the bottom line is that no matter how hard you try, you can’t even begin to chip away at the mountain of debt in front of you. Chapter 7 bankruptcy is designed to provide relief for cases like this.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a powerful tool to wipe out insurmountable debt and the most common type of consumer bankruptcy under the protection of a federal court. You may have to give up assets like jewelry or expensive cars. Still, experienced bankruptcy lawyers can help you keep what matters most under property exemption laws.

This type of bankruptcy wipes out most debts without collateral, aka unsecured debts, such as personal loans, credit card debt, and medical bills.

Do You Qualify for Chapter 7 Bankruptcy?

If you’d like to file for Chapter 7 bankruptcy to eliminate your medical debt, you’ll have to meet specific criteria to be eligible. These vary between states, but generally, you must:

  • Pass the means test, which takes into account your expenses, income, and family size. To qualify for Chapter 7 bankruptcy in Raleigh, your household income should fall below your state’s median income
  • Not have a completed Chapter 13 in the past six years or a Chapter 7 in the past eight years
  • Not have a dismissed Chapter 7 or Chapter 13 petition in the past 180 days because you voluntarily dismissed your filing or failed to comply with court orders

Checking and preparing your qualifications is a fairly involved process. It involves a lot of documentation, and getting everything together can be expensive and confusing. Even the smallest mistakes, such as listing conflicting amounts or omitting items, can result in your case being thrown out.

It’s already challenging to accomplish this on an average day. It becomes exponentially harder when you’re dealing with the stress and aftermath of a medical situation. Let bankruptcy lawyers take this burden out of your hands by guiding you through the entire process.

Freedom from Medical Debt is Within Reach

You and your loved ones deserve to nurture your health without the added weight of medical debt. We have helped thousands of people just like you achieve debt relief with the help of Chapter 7 and Chapter 13 bankruptcy. We would love to be part of your journey to a peaceful and debt-free life.