GET HELP TODAY
Depending on the situation, filing for medical bankruptcy in Raleigh can be the best option for the struggling individual. With the help of Weik Law Office, you may be able to get back on your feet sooner than you think.
Types of Debt Relief for Medical Debt
Medical debt is the top reason for bankruptcy filing in the United States. In fact, surveys show that healthcare problems in America cause a bankruptcy every 30 seconds – and experts say that it is not even a fraction of the real number.
People who are facing insurmountable debt due to medical bills can file for one of several types of debt relief. The most common of these are Chapter 7 and Chapter 13 bankruptcy.
- Chapter 7
This type of debt relief is also known as straight bankruptcy. Each state has a set of exemptions that apply in bankruptcy like child support, back taxes, and student loans. Filing for Chapter 7 bankruptcy will eliminate your debt in a short time and give you a fresh start.
There are strict rules in filing for Chapter 7 bankruptcy, but our Raleigh bankruptcy professionals will guide you through qualifications and paperwork.
- Chapter 13
This type of debt relief is called the wage earner plan. It is for people who earn a monthly income or wage but do not get enough to pay back their whole debt.
Much like Chapter 7, filing for Chapter 13 bankruptcy eliminates a considerable portion of your debt. Together with your bankruptcy attorney in Raleigh, a payment plan will be drawn up for your remaining debts. Even if you are not able to pay off everything after 3-5 years, the rest of your debts may be discharged.
Benefits of Filing for Medical Bankruptcy
Research shows that even those with health insurance are not entirely safe from medical bankruptcy. Expensive out-of-pocket expenses and high deductibles can quickly put anyone in serious debt.
Fortunately, medical bankruptcy offers benefits you might not expect:
- It triggers the automatic stay to prevent creditors from harassing you or repossessing your properties. It also stops many wage garnishments, evictions, and utility shutoffs as you continue to recover and plan your next steps.
- You may be able to keep your property after filing for Chapter 13 bankruptcy, including your car and home.
- You can improve your credit rating after your debts are discharged, even though the filing will remain on your record for up to 10 years.
- You will be able to protect your reputation since bankruptcy filings are not a matter of public record.
- You will learn to improve your financial habits because credit counseling is required after declaring personal bankruptcy.
Rebuild Your Life with Weik Law Office
It is true that filing for bankruptcy due to medical reasons is not an easy decision to make. Under the guidance of our bankruptcy lawyers in Raleigh, NC, you can rebuild your life and gain total freedom from your debts.
Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our professionals.