Medical Debts and Bankruptcy

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Collection agencies will have you believe that medical bills cannot be included in a bankruptcy, but that’s simply not true. Fact is, more than half of all bankruptcy cases filed are due to medical debts and/or health reasons.

Whether a serious illness resulted in skyrocketing medical bills or missing work because of health reasons, all medical debt can be included in your Chapter 7 bankruptcy. And fact is, hospitals and debt collectors do file lawsuits for medical bills. I consistently see lawsuits filed by Starke Medical Center for outstanding bills.

If you are filing for bankruptcy because of medical bills, it’s important to remember that medical debt is rarely listed on credit reports. To get all pending medical bills, sometimes this requires going to the hospital where you received treatment to get all your information. When you file for bankruptcy, you want to make sure to include all your creditors.

Once you start your case with me, which includes flexible payment plans and no money down, any calls from harassing creditors can be referred directly to me so they stop pressuring you and calling you at all hours of the day and night.

I even had one client tell me this week that a creditor called her son and when she complained to the creditor, he replied I can call whomever I want as many times as I want. That’s also not true!

If a Lawsuit Has Been Filed Against You

If a creditor, whether because of creditor card debt or medical bill has filed a lawsuit against you, the good news is filing for Chapter 7 bankruptcy will stop that lawsuit thanks to what is called the automatic stay. This will prevent getting your wages garnished or liens placed on your real and/or personal property.

When is Chapter 7 Bankruptcy the Right Choice for You

Some of the reasons you may proceed to file Chapter 7 bankruptcy instead of a Chapter 13 bankruptcy:

  • If you qualify based on income and pass the Means Test
  • Your assets are exempt from Chapter 7 bankruptcy
  • You are up to date on your mortgage and car payments

For a free consultation, contact Attorney Alex Hernandez. Saturday appointments are also available.

Attorney Alex Hernandez

Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years. (904) 712-5565 or (305)-688-LAWS (5297). *Se Habla Español

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