Medical care in America is extremely expensive, even for those who have insurance. In fact, trillions of dollars in medical costs are accumulated each year, oftentimes leaving households struggling to pay off medical debt and find ways to make ends meet. Many people who end up in this situation take on additional work, cut other necessary expenses, or simply find themselves subject to collections, repossession, and foreclosure when they’re unable to pay their bills. This is unfair and unacceptable.
Can you escape your medical debt?
Yes! In fact, hundreds of thousands of Americans do this each year by pursuing personal bankruptcy. Since medical debt isn’t secured by collateral and is usually considered nonpriority, it’s highly likely that this debt will be discharged in your bankruptcy if you choose to pursue that path.
How does medical debt bankruptcy work?
Just like any other bankruptcy. If you pursue a Chapter 7 bankruptcy, then some of your assets will be sold to pay back creditors, but many of your remaining debts at that point will be written off. There are also bankruptcy exemptions that will come into play, meaning that you won’t have to give up all of your assets in the bankruptcy process.
In a Chapter 13 bankruptcy, you’ll be placed on a payment plan that will last for a specified period of time, at the end of which your debt will be discharged. This allows you to retain your assets, but it also typically requires you to pay back more of your debt.
Which bankruptcy path is right for you?
This is going to depend on your circumstances and what you hope to get out of the process. What’s important to remember, though, is that there is hope for escaping your debt woes. You simply need to educate yourself about the bankruptcy process and aggressively pursue it in a way that’s advantageous to you.