Coronavirus, Medical Bills and Bankruptcy
One of the biggest reasons individuals file for bankruptcy is due to mounting medical bills...
One of the biggest reasons individuals file for bankruptcy is due to mounting medical bills. With the uncertainty of how coronavirus will affect your family, more individuals are becoming increasingly aware of the fact that they could be put into a situation like this at some point in the pandemic if they, themselves, or a loved one becomes critically ill over time.
Medical bills are categorized as unsecured debt and can be eliminated by filing for bankruptcy. As discussed in our previous blog, unsecured debt is not backed by any of your assets. If you file Chapter 7 bankruptcy, your medical bills will be eliminated just like your credit card bills, when you are discharged. If you file for Chapter 13 bankruptcy, you will restructure your medical bills along with your other bills and devise a repayment option to eliminate the debt.
Once you make the decision to file for bankruptcy, your attorney can help clarify which option is best for you.