As well intended as the Affordable Healthcare Act was, it still won’t stop the financially devastating ripples that ring outward when a serious accident occurs or a life-threatening illness is diagnosed. According to financial analysis site Nerd Wallet, 10 million Americans between the ages of 19 and 64 will incur medical bills they cannot pay — and that’s despite having continuous health insurance coverage. In fact, the same study that published those findings also concluded that excessive medical costs are the reason for the majority of bankruptcies filed in the U.S. When medical debt grows beyond your control, sometimes a Chapter 7 bankruptcy through a Plano TX attorney is the best option.
It’s not difficult to lose control of your finances when large medical bills are in the picture. You start out determined to maintain a grip on all your financial obligations. However, if your budget is already stretched to its limits one more payment, regardless of the dollar amount, is the proverbial straw that broke the camel’s back. You may try to limp along for a few months, maybe even a year or more, making payments late in an effort to try to make your income go further. That game will only get you so far, however, and when you begin dividing your debts into two categories, paying them in alternating months, it’s time to consider other options. Creditors won’t go for that plan for more than a few months and soon the collection calls will start. When you’re backed into that corner, Chapter 7 bankruptcy in Plano TX is the easiest way to relieve the burden of medical debt piled on top of your other obligations.
Not everyone is eligible for a Chapter 7 bankruptcy in Plano TX. If your income is higher than the median income in Texas, you won’t qualify for a Chapter 7. Even if your income qualifies, not all of your debt will be wiped clean with a Chapter 7. AmericanBar.org indicates that some debts are not dischargeable through a Chapter 7 bankruptcy. These include support obligations, tax liens and student loan debt. Additionally, if you have debts secured by property such as a car, house, motorcycle or other asset, the property may be required to be sold. The proceeds will go to the creditor to pay off the loan or at least offset the loss to the creditor. Sometimes a repayment plan can be negotiated to keep a debtor from losing his home, vehicle or other vital assets. Unsecured debt is almost a slam-dunk, though. With nothing to lien, those debts — including medical bills — are typically discharged when the bankruptcy is finalized.
Collins & Arnove | Chapter 7 Bankruptcy Plano TX | 972-516-4255