Medical Bills Are Often a Key Cause of Bankruptcy
People who’ve experienced an illness or injury and found themselves buried in bills (even if they have health insurance) may consider filing bankruptcy as a way to get out of debt.
Although people tend to have a lot of questions about filing bankruptcy, bankruptcy was created to help people resolve overwhelming bills so they can move forward
There are two main types of personal bankruptcy:
Chapter 7 bankruptcy (debt repayment plan) involves the debt discharge, which eliminates unsecured debts, which are debts not tied to the property, such as medical bills, credit cards, utility bills, and some personal loans.
A Chapter 13 bankruptcy filing is a little different because it involves setting up the filer on an interest-free debt repayment plan. This is generally best for people who have unsecured debt and secured debt, which is debt tied to the property, such as a mortgage, that they want to keep. Chapter 13 bankruptcy has helped millions stop foreclosure, repay their debts, and stay in their homes. When you or a loved one is injured or ill, what’s important is focusing on getting better–not worrying about excessive medical bills.
Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg, and the Tampa Bay area.