Are you feeling the pressure of unpaid medical bills? These past couple of years have created financial hardship for an unprecedented number of Americans. The good news is there are options to help you get out of the situation you’re in, and at Berken Cloyes, PC, we have helped thousands of other clients do just that.
According to a survey done by LendingTree in March of this year, as many as 12.5 million Americans were already laden with medical debt related to COVID-19. That number has surely gone up since then. Around 60% of poll respondents had medical debt, and the typical amount owed in this survey was between $5,000 and $10,000. Regardless of whether your medical bills are from COVID or another circumstance, if you’re struggling to pay them off, you may qualify for bankruptcy.
What Happens to Medical Bills in Bankruptcy?
Of course, everyone’s situation is different, but generally speaking, unpaid medical bills are often discharged in Chapter 13 or Chapter 11 bankruptcy. Since they are unsecured debts (as opposed to, say, a car loan or a mortgage, where there is something to be taken back in case of nonpayment), many who opt for bankruptcy are able to get rid of those medical debts once and for all. In many cases, the court will dictate that very little (or even nothing) will be paid out towards the medical bills, and the legal obligation is discharged.
To find out whether or not you qualify for bankruptcy or what type of financial relief you might experience from filing bankruptcy, call the top bankruptcy firm in Colorado (according to SuperLawyers) Berken Cloyes, PC. Our team focuses exclusively on helping those who are unable to meet financial obligations. We have helped thousands of clients get out of debt and achieve financial freedom and would love to help you do the same.
The one thing that never helps when a financial burden becomes too much to bear is to ignore the bills. They won’t go away on their own and can, unfortunately, get worse. Late fees and other hidden surprises tend to pop up, accounts get sold to collection agencies, and lawsuits aren’t uncommon, especially these days. If a judgment is awarded to a creditor against you by a court, you could lose a portion of your wages or even money from your bank account(s) to be paid directly to the creditor.
The longer you wait, the fewer the options that may be available to you. If the pressure of your medical bills is too much, we can help, call our team today and find out what your options are.