Effects Of Medical Debt On Increase In NV Bankruptcy Filings

How Filing For Bankruptcy Can Help With Your Medical Bills

If you get sick, you might just think that your insurance will cover everything, and you have no reason to worry. But there is a lot that your insurance won’t cover, and you could have high deductibles or co-insurance amounts, which means that if you become seriously ill or injured, you could be out thousands of dollars. Imagine the bills if you don’t have any insurance at all.

Medical debt has gotten so out of hand that many people are choosing between losing everything they have or continuing to be sick. But those are not the only two options. Filing for bankruptcy can also give you the debt relief you need while allowing you to hang onto important assets, like your home and your car.

Rising Medical Costs

A 2013 study from NerdWallet looked at data from the Centers for Disease Control and Prevention, the U.S. Census, the federal court system, and the Commonwealth Fund, and it found some unsettling things about medical costs and the impact they have on consumers. Among the findings of the study included:

More than one-fifth of people between the ages of 20 and 64 in America would have trouble paying for the medical care
Despite having insurance coverage, 10 million people in America would receive medical bills that they couldn’t pay

The report also concluded that millions of people would need to file bankruptcy in this country because of their medical bills.

Challenging Medical Bills

If you land a huge medical bill, there are a few ways that you may be able to manage it, if you want to look at options before considering bankruptcy. You can call the hospital or medical provider and challenge the debt. You may challenge parts of it – such as double charges – or you may challenge all of it based on the costs being too high compared to averages in your area.

If that does not work, you may be able to just negotiate a lower price for the bill. Some providers will give you a self-pay discount, which can be up to 50 percent off the bill. Some providers also have an assistance program if you say that you cannot pay the bill. You may be able to get all of your costs dismissed.

Filing Bankruptcy For Debt Relief

If you aren’t able to negotiate your debt down, you may want to consider filing for bankruptcy. Medical debt is an unsecured debt, meaning that it is not backed by any assets, such as your home or car. Filing for Chapter 7 bankruptcy could discharge all of your medical debt, as well as any other unsecured debts you may have, such as credit cards or personal loans. Depending on your financial circumstances, you could have all this debt discharged while protecting your home.

If you can’t file for Chapter 7 bankruptcy, you can file for Chapter 13 bankruptcy, which reorganizes all your debt into a more affordable repayment plan that lasts three to five years. At the end of the term, you may be able to discharge some debts that remain, such as the unsecured medical bills. That will let you catch up on other debts you may have incurred while trying to pay down your medical debt, such as a second mortgage on your home or a personal loan.

Manage Your Medical Debts With a Reno Bankruptcy Lawyer

Talk to an experienced bankruptcy attorney to learn more about how bankruptcy might help you manage your medical and other debts, and what type of bankruptcy filing might be right for you. Call Zero Down Bankruptcy Lawyers of Reno to learn more about the process and to learn how you can get the maximum debt relief under the law. Our attorneys will carefully look over your finances and talk with you to learn more about what goals you have. Then we’ll recommend a course of action that will help you shed the most debt while also keeping the most assets. We help with Chapter 7 and Chapter 13 filings, as well as emergency bankruptcy filings, and we don’t require any money down to get started. Contact us in Reno today to schedule your free consultation and learn more.