Sawin & Shea Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. Its the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.
Please do not hesitate to call us today at 759-1483 or send an email for a free consultation. We are ready to help.
Debts That Aren’t Discharged Unless You Meet Legal Exception
You must ask the court to discharge certain debts. For instance, you must convince the court that you won’t be able to repay student loan debt.
Other debts won’t be discharged unless you meet legal requirements. For instance, discharging income taxes won’t happen unless a particular amount of time has elapsed and other requirements are met.
Can Bankruptcy Help With Medical Bills In Pennsylvania
There are many reasons why people file for bankruptcy, including job loss, separation, or divorce. However, one of the most common ones is medical bills. The statistics surrounding medical debt are frightening. Every year, approximately 530,000 Americans will file for bankruptcy because of medical bills and indebtedness. On average, 65% of all bankruptcies stem from medical debt. Fortunately, medical debt is unsecured and is dischargeable through bankruptcy.
Healthcare is expensive. One medical issue could drive you and your family into a financial spiral. Some people will ignore medical debt, while others will incur other debt to pay their medical expenses. However, you have other choices. Bankruptcy is a federal legal process that provides relief from debt including medical bills and expenses.
You might know something about bankruptcy, but it is unlikely you understand all the potential benefits. At Young, Marr & Associates, our Philadelphia bankruptcy lawyers provide professional legal representation and guidance for those facing economic hardship. Call 701-6519 in Pennsylvania or 755-3115 in New Jersey to discuss your options in dealing with your medical debt.
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Effect On Healthcare Services
You may be concerned about the relationship with your doctor once you file for bankruptcy. If you file for bankruptcy under chapter 7, it may have an impact on your relationship with your physician or make it hard to receive medical care. Legally, it is required that hospital emergency rooms treat patients irrespective of whether they can pay or not. However, your doctor may refuse to treat you because of your medical debts.
Still, other doctors may hesitate to take that extreme decision. They would understand the purpose of bankruptcy and why you had to file the case. Most of them will retain you as their patient provided you are willing to repay your debt.
However, since most people are uncertain of what will happen, they choose to pay off their medical bills even after they file for bankruptcy so that they can be sure of maintaining good relationships with their physicians.
Debts That Are Never Discharged
You’ll continue to owe these debts after your Chapter 7 bankruptcy case is over, and you’ll pay these debts in full in your Chapter 13 plan:
- child support and alimony
- fines, penalties, and restitution you owe for breaking the law
- certain tax debts, and
- debts arising out of someone’s death or injury as a result of your intoxicated driving.
If you file under Chapter 7, you’ll also continue to owe condo, coop, and HOA fees; debts for loans from a retirement plan; and debts you couldn’t discharge under a previous bankruptcy.
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Our Medical Debt Relief Attorneys
Our debt relief attorneys know that discharging medical debt may not be something you ever thought you would have to consider.; However, sometimes you may need to declare bankruptcy because of a result of debts that were not voluntary.; Phoenixs leading cause of bankruptcy is medical debt and doctors bills.; Thankfully, there is relief for people struggling;with medical debt.; Their debts can be eliminated through;chapter 7 or chapter 13 bankruptcy.
Above all, several of lifes circumstances can create financial;hardship.; Additionally, medical debt cost can quickly become overwhelming:; multiple Dr.Appointments, rising prescription costs, and many other medical procedures.;;
Plus, medical debt in Arizona affects individuals with insurance, and those without insurance.; Nevertheless, a bankruptcy discharge through chapter 7 and chapter 13 bankruptcy may be the debt relief you seek in order to eliminate your Arizona medical debt.; Generally, medical debt and cost is considered unsecured debt.; Unsecured debt is completely eliminated in a bankruptcy filing.
What is a Medical Bankruptcy?
Find Out Which Debts Will Be Wiped Out
Updated by Cara O’Neill, Attorney
COVID-19 Update: Bankruptcy courts will hold 341 creditor meetings telephonically or by video appearance until 60 days after the termination of the President’s COVID-19 National Emergency Proclamation. For details, visit the U.S. Trustee’s 341 meeting status webpage or your court’s website. If you’re one of the many struggling with debt due to COVID-19, it’s best to develop a financial plan early. Learn about your options in What to Do If You Can’t Pay Bills Due to the Coronavirus or about bankruptcy for small businesses.
Filing for bankruptcy can get you out from under debt and give you a fresh start. In both Chapter 7 or Chapter 13 bankruptcy, many types of debt will be discharged at the end of your case. This isn’t true of all debts, however.
If you have nondischargeable debt and you file for Chapter 7, you’ll still owe these debts after your discharge. If you file for Chapter 13 bankruptcy, you’ll repay most nondischargeable debts in full through your repayment plan.
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Chapter 13 Bankruptcy And Medical Debtif You Cannot Qualify For Chapter 7 Bankruptcy You Will Likely Be Able To File Under Chapter 13
Chapter 13 bankruptcy allows people who have a steady income to develop a plan that enables them to pay all or a portion of their debts over three to five years. Chapter 13 bankruptcy is a reorganization program and is sometimes referred to as a wage earners plan. It requires the debtor to devote their disposable income to the repayment plan for its duration.
In a Chapter 13 bankruptcy, the debtor submits to the Bankruptcy Court a plan for paying their debts, often through payroll deduction and a trustee who ensures distribution of payments to creditors. The plan must be confirmed by a North Carolina bankruptcy judge and is subject to objections from creditors, which the judge will hear and rule on.
Once the payment plan is completed, the court will grant a discharge of remaining low-priority debts, which includes medical bills and other unsecured debt. However, unsecured creditors must receive at least what they would have been paid if the debtors assets had been liquidated under a;Chapter 7 bankruptcy. This is referred to as the liquidation test.
Because of the liquidation test and/or disposable income test, a Chapter 13 bankruptcy may result in paying all debts in full but, in many cases, remaining general unsecured debt such as medical bills and credit cards are reduced or discharged at the conclusion of the payment period.
Negotiate A Settlement With The Medical Provider
To start, make sure you’ve resolved all insurance payment issues. Once you have gotten all of the available insurance coverage, consider negotiating a settlement with the creditor. If the bill was for uninsured medical costs, then the medical provider might waive a percentage of the bill. Many hospitals and other medical providers routinely waive or discount bills for uninsured patients.
Medical Debt Is Dischargeable In Bankruptcy
Fortunately, that debt is dischargeable in both a Chapter 7 straight bankruptcy and a Chapter 13 repayment plan. You may have to qualify for a Chapter 7 case under the means test, which is a calculation using your income and expenses to determine if you can afford to make payments. If you don’t pass the means test, you can file a Chapter 13 case and pay some of your debt over three to five years.;
Debts Discharged Unless A Creditor Successfully Objects
Some debts get wiped out unless a creditor convinces the court that you should remain obligated to repay the debt. These debts include:
- debts arising from actual fraud
- debts for luxuries of more than $725 purchased within 90 days of filing or cash advances of more than $1,000 taken within 70 days of filing
- debts arising from willful and malicious acts
- debts arising from embezzlement, larceny, or breach of fiduciary duty, and
- debts or creditors you don’t list on your bankruptcy papers.
Are Medical Bills Discharged In Bankruptcy
With healthcare costs skyrocketing, its no surprise that more than 60% of petitioners filing for bankruptcy have a significant amount owed in medical debt. If youre wondering whether you can discharge medical bills in bankruptcy, the answer is yes. However, different types of bankruptcy require you to either give up valuable property or follow a debt repayment plan for some time. This article explains the difference between types of consumer debts and discusses what filing bankruptcy for Chapter 7 or Chapter 13 entails for your financial future.;
Get Relief From Crushing Medical Debts
Medical bills are classified as unsecured debts. That means that a medical provider does not have recourse to a specific piece of property if you cannot pay your medical bills.
Dealing with the aftermath of a serious illness or accident is tough enough without the added stress of high medical bills. Let our attorneys guide you to debt relief and a brighter financial future.
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Medical Debt In Bankruptcy
If you can’t settle the debt and it looks as if the creditor may pursue you for payment, then your good credit is going to take a hit anyway because a collection action will show up on your credit report. Also, if the provider sues you and gets a judgment, it can garnish your wages or take other collection action.
Not only can filing for bankruptcy wipe out your debt, but the sooner you file, the sooner you’ll be back on the road to financial recovery.
Ask About Assistance Programs
Most hospitals have assistance programs that, if you qualify, will give you free or reduced hospital care, depending on your level of income. For instance, in some states, the Hospital Care Assurance Program will cover expenses for medically necessary services. Also, non-profit hospitals that enjoy federal tax-exempt status might have to go easier on you and other cash-strapped patients when it comes to medical billing. This might apply to you. You should contact your hospital’s financial aid counselor to find out more information and apply for applicable coverage.
To learn more about these and other options, see Managing High Medical Debts.
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Is Medical Debt Discharged In Chapter 13 Bankruptcy
WhileChapter 13 bankruptcy will not eliminate your unsecured debt as quickly as Chapter 7, it is still a viable option for those who are unable to get out from under their medical debt. Rather than receiving a discharge of debt within 4 to 6 months of filing, as would be the case in Chapter 7, Chapter 13 would allow you to develop a repayment plan that could be executed over 3 to 5 years. As long as you follow the decided guidelines of your bankruptcy plan, you should be able to receive a discharge of all remaining debts once the process has been concluded.
Unlike Chapter 7, which requires debtors to pass ameans test, Chapter 13 bankruptcy is available to all consumers who have run into financial trouble.
Can I File Bankruptcy Over Medical Bills In California
Dealing with a huge medical bill can be an overwhelming experience for any person. Medical emergencies can often bring you under unexpected medical debt, even if you are financially stable. Not only does the cost of treatment start to accumulate, but if the emergency is significant, it may render you incapable of working and earning an income.
If you are in this situation, sometimes the best option that can relieve you from these debts is to file for bankruptcy. However, you need to be careful with the option you go with since filing for medical bankruptcy may also have unnecessary consequences on your other debts, important assets like a car or house, and your credit scores.;
To best understand your options, you need to consult an experienced bankruptcy attorney. At San Diego Bankruptcy Attorney, we specialize in helping any person in San Diego seeking to file for bankruptcy or those that have any questions about the procedure. In this article, we will focus on how filing for bankruptcy can provide relief for your medical bill.
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Complete The Bankruptcy Forms
There are at least 23 separate forms that add up to around 70 pages that you need to fill out. You will be required to list all of your real estate, debts, and personal property. You will also need to provide every detail of your financial life, such as your last debt payments, family income, every family expense, and your latest property sales or transfers.
Filing Chapter 13 Bankruptcy To Get Rid Medical Bills
A Chapter 13 bankruptcy case is a repayment plan. You enter a three-year to five-year bankruptcy plan to repay your debts. In most cases, a Chapter 13 bankruptcy plan only pays a small percentage of the money owed to unsecured creditors. When the Chapter 13 plan is complete, any remaining amounts owed to unsecured creditors are discharged, provided that the debt is eligible for bankruptcy discharge. Therefore, if you owe medical bills, your creditors will receive a percentage of your medical debts. Once you complete your bankruptcy plan and receive your discharge, your legal liability to repay the remaining medical debt is eliminated.;
A Chapter 13 bankruptcy case is a good option for individuals who do not meet the income qualifications for filing under Chapter 7. This chapter of bankruptcy may also be a good choice for a person who owns property that might be at risk of being sold in Chapter 7, has non-dischargeable debts , or is behind in their mortgage payments and car loan payments. The downside of Chapter 13 is that you are in a bankruptcy repayment plan for a long time. Most Chapter 13 plans are 60-month plans. If you fail to complete the Chapter 13 plan, you do not receive a discharge, and you continue to owe all the debts you owed before you filed for bankruptcy relief.
Chapter 13 Bankruptcy And Medical Debt
Chapter 13 bankruptcy focuses on making debt repayment more manageable. After taking into account all of your debt, income and assets, a Chapter 13 bankruptcy establishes a court-mandated plan that helps you repay some or all of your debtincluding medical billsin affordable monthly installments that do not exceed 15% of your disposable income. Additional details:
- Chapter 13 creates a three- to five-year repayment plan. The plan is based on your debt and income levels. Some or all of your remaining debt may be discharged at the end of the repayment period, freeing you from further payments.
- Debt cannot exceed certain levels. To file for Chapter 13 bankruptcy, you must have no more than $394,725 in unsecured debt and no more than $1,184,200 in secured debt.
- You must have regular income. For Chapter 13 to work, you need the means to repay your loans, even at a reduced level.
- Chapter 13 may be better for homeowners. Chapter 13 halts the foreclosure process and requires your mortgage lender to let you include your home loan as part of your repayment plan.
- Resolution takes longer. While a Chapter 7 bankruptcy is over in four to six months after the proceedings end, Chapter 13 stretches out over years.
Medical Debt Is Dischargeable Through Bankruptcy
There is no bankruptcy process focused solely on medical debt. While people will file for bankruptcy because of their medical debt, they are not filing a medical bankruptcy. Most people will file either a Chapter 7 or Chapter 13 case. The differences of each will be discussed shortly. However, it is important to understand what medical debt is.
When you file for bankruptcy, you must include all your debt. The type of debt you have is one factor in determining whether it could be discharged. Some debt, such as mortgages or car loans, are secured debt. If you want to discharge those types of debt, you will likely lose the property. Other types of debt, including certain taxes, alimony, and child support, cannot be discharged through bankruptcy. Most other kinds of debt, such as credit card bills and personal loans, are considered unsecured and are dischargeable. Medical debt, including hospital bills, medication expenses, and other costs, is unsecured debt and, therefore, dischargeable. When you meet with one of our Pennsylvania bankruptcy lawyers, we will thoroughly review the type of debt you owe.
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