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Can You File Bankruptcy on Medical Bills?

filing bankruptcy on medical bills

You can file bankruptcy on medical bills.  It is possible to file bankruptcy for medical bills due to a car accident, work related injury, chronic illness, or sudden disease. Bankruptcy can provide a fresh start from the overwhelming debt that can be caused by an event outside of your control.  

Many personal injury attorneys tell clients that nobody asks to be in an accident or to be hurt at work.  Well the same is true for being in debt because of one of these accidents.  

Clients call our firm every year that had an unexpected medical issue or a serious accident and are now drowning in debt.  They are taking money out of retirement accounts or considering selling assets. They are even considering selling or mortgaging their house.  

Before you take any of those actions you should talk with our team.  Whether or not you file a bankruptcy, you will know your options and will be able to make an informed decision.  We hate to see clients who have exhausted their assets and then file a bankruptcy.  This is because we could have relieved the debt and allowed for our clients to keep their assets in many cases.  Bankruptcy can provide the relief you need while keeping those assets intact. 

Bankruptcy does not force you to liquidate your retirement accounts, your house, your cars, or your bank accounts.  Depending on the value of your assets you can either have all of the medical debt forgiven in a chapter 7 bankruptcy or enter into a repayment plan for a fraction of the debt you owe in chapter 13 bankruptcy.  

Our team can guide you through the process and help you recover.  The stress of being injured or suffering from a chronic illness is enough, you do not need the stress of the doctor or hospital bills on top of it.  

Bankruptcy can provide you a parachute to the debt phone calls and endless payment plans.  It can put you on your path to a fresh start so you can rebuild and recover from your illness or injury.  We provide free personalized debt consultations.

 

If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company 724-832-2499.

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