Not only those without health insurance are overwhelmed with medical bills; deductibles are so high for many individuals with health insurance as well. When someone is living paycheck to paycheck, the only option for paying essential medical costs can be to use a credit card.
Medical Bills Can Lead to Financial Collapse
Of course, using credit cards to pay bills is only putting a band-aid on a bleeding wound. Increasing income by getting a second job isn’t always possible. People with chronic health issues put off needed medical treatment and uncovered medications. This can result in worsened overall health and perhaps hospitalization.
Even if insurance covered the hospitalization costs, not being able to work for a while can cause the collapse of a financial house of cards. Filing for chapter 7 bankruptcy in Jefferson County, MO can become a reasonable solution to an unbearable situation.
Chapter 7 Bankruptcy
Chapter 7 is the most common type of bankruptcy filing in the U.S. Medical bills are the most common reason for bankruptcies. This is true even for older Americans with Medicare, which is often a better health insurance than younger people have.
Chapter 7 is a liquidation bankruptcy, meaning that the trustee is authorized to sell all non-exempt assets and divide the proceeds among creditors. Determining what is and isn’t exempt can be difficult, which is one reason why many prefer to hire an attorney. All non-exempt assets, such as household goods and clothing, are kept. It may be possible for a debtor to keep all personal belongings.
* Chapter 7 typically takes six months or less to complete and only requires one trip to court.
* As soon as the bankruptcy petition is filed, an automatic stay goes into effect. Creditors aren’t allowed to contact you. No more letters, no more phone calls, period.
* Medical bills, credit card bills and other unsecured debts will be eliminated.
* In some cases, a lien against property can also be wiped out.
* Student loans, child support and most tax debt will remain after the bankruptcy but should be easier to pay with the other debts gone.
If you’ve been considering chapter 7 bankruptcy in Jefferson County, MO, call Jerry Hoff for the experienced assistance you need. The bankruptcy process is complex and must be done exactly according to law.
