It’s hard to imagine a time when you can’t pay your bills. You’ve always been good about keeping your bills low and your income high. You had a strong savings and had set aside funds to make sure you could cover life’s little emergencies.
What you didn’t expect was that the last “little” emergency you had would cost hundreds of thousands of dollars. Unfortunately, even with health insurance, you were left with over $10,000 in debt just from your deductible.
Medical expenses like this often threaten people’s finances. It’s one of the major problems with the U.S. health system and something that does need to be addressed. In the meantime, you should know that there are things that can help you, such as turning to bankruptcy to clear your debts.
Why choose Chapter 7 bankruptcy to get rid of medical debts?
Chapter 7 bankruptcy has the benefit of being able to completely discharge unsecured debts, like medical debts. If you qualify based on your income, a Chapter 7 bankruptcy asks that you liquidate extraneous assets in order to pay down debts. Many of your assets will be exempt from liquidation, so some people don’t actually need to liquidate anything at all.
Once you go through the requirements of Chapter 7 bankruptcy, any qualifying debts will be discharged. You will not have to worry about paying them back, and you can move forward with firmer financial footing.
Our website has more about Chapter 7 bankruptcy and what you should do if you want to minimize the liability you have for large medical bills.