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Are Medical Bills Wrecking Your Finances?

 Posted on July 12, 2023 in medical debt

TX bankrutpcy lawyerThe most common reason that Americans file for personal bankruptcy is not reckless spending, insurmountable credit card balances, or even safeguarding against the risk of foreclosure. The most common reason that hard-working adults in the U.S. file for bankruptcy is overwhelming medical debt. If you or a loved one has experienced an illness or injury that has devastated your family’s budget and made it difficult to get by, it may be time to consider filing for bankruptcy too.

Chapter 7 Relief

If you do not earn much income, chances are that you qualify for Chapter 7 bankruptcy relief. If so, you can have your outstanding medical debt balances discharged – after only a few months – without any obligation to repay your creditors first.

If all of your bills are owed to a single creditor, it may be to your advantage to speak with our firm about whether you are a strong candidate for an alternative debt relief or debt management approach. But, if you have other debts that are weighing you down, and you are eligible for Chapter 7 relief, it may provide you with the fresh start that you are looking for.

Note that those who are eligible to file for bankruptcy under Chapter 7 of the Bankruptcy Code do, occasionally, consider Chapter 13 relief instead if their home is at risk of foreclosure or they own significant non-exempt assets that may be liquidated in a Chapter 7 proceeding.

Chapter 13 Relief

If you earn too much income to have your medical debts discharged via Chapter 7 bankruptcy, filing for Chapter 13 relief may be a viable alternative. This approach would commit you to 3-to-5 years of making a single payment for all of your debts each month to the court. The court will then distribute your assets per the terms of your repayment agreement. At the end of a successful repayment period, any remaining medical debt balances will be discharged outright.

Discuss Your Situation with a San Antonio Bankruptcy Lawyer to Learn More

Every individual’s financial situation is unique. As a result, it is not always easy to know how to approach personal debt most effectively. By discussing your circumstances with a reputable San Antonio, TX bankruptcy lawyer, you can receive personalized guidance that will empower you to make truly informed decisions about your debt relief and debt management options.

To schedule a confidential case evaluation in a pressure-free environment, feel free to either reach out to the firm online or to call the office directly at 210-342-3400. You and your case will always be treated with the utmost care, consideration, and respect. Call today and spend tonight sleeping a little less restlessly, knowing that you have options available to you.


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