No matter how you look at it, healthcare has gotten much more expensive in recent years. This includes the cost of insurance for most people, as well as the debt that can occur if you suffer from a serious illness or injury. If you are facing a seemingly insurmountable amount of medical debt, you may wonder if bankruptcy is the solution you have been looking for.
The answer is that it depends. Keep reading to find out more about your options to eliminate medical debt through a California bankruptcy. Then contact The Law Offices of Paul Y. Lee at 888-748-0025 for your free bankruptcy consultation.
A Closer Look at What You Can Eliminate During a California Bankruptcy
While bankruptcy can help you eliminate much of your debt, there are limits on what can be eliminated. For example, alimony, child support, court fines, student loans, and certain taxes cannot generally be eliminated during bankruptcy.
However, most or all unsecured debt can typically be eliminated. This includes anything that does not have collateral to secure it, such as credit card bills. It also includes medical bills which means that it can generally be discharged in a Chapter 7 bankruptcy. In specific cases, a Chapter 13 may work as well.
Filing Bankruptcy Can Immediately Take the Pressure Off
When you file for bankruptcy, you will be automatically protected by an automatic stay. This makes it unlawful for debtors to take any collection actions except via the court system. Any unsecured creditors must stop calling you immediately. They must stop sending letters. This can give you immediate comfort as you are no longer living with the stress of constant harassment from creditors.
Not Everyone Qualifies for Chapter 7 Bankruptcy
Chapter 7 may be a great option for you to eliminate medical debt (and other unsecured debt) but not everyone qualifies. To find out if you do, you will need to take a means test. This measures your ability to pay your debt. If it is determined that you do have the “means” to pay the debt, then may not qualify to discharge your debt via Chapter 7 bankruptcy.
The Process of Chapter 7 Bankruptcy
If you do qualify for Chapter 7 bankruptcy, a trustee will be appointed to oversee the process. They will take any property you have that is non-exempt and sell it. The proceeds from said sale will be distrusted to your creditors. The process generally takes about seven or eight months. When it is complete, your debt will be eliminated.
Find Out More About Your Specific Options
The information above is general information about eliminating medical debt. If you want to find out more about your specific options, contact The Law Offices of Paul Y. Lee at 888-748-0025 today and request a free consultation. We are here to help you and offer our best advice on how to proceed. Call now and let us get started.