Medical debt has become a silent epidemic affecting millions in a country where healthcare costs continue to soar. The stress of mounting bills can overshadow the joy of recovery, leaving many to wonder if there is a way out. For those struggling with medical debt, or debt in general, bankruptcy might offer a new financial beginning.
When to consider bankruptcy
Consider these tipping points that might indicate it is time to explore bankruptcy:
- Your medical bills exceed half of your annual income.
- You are using credit cards to pay for basic necessities.
- You are receiving constant calls or letters from debt collectors.
- You are considering withdrawing from retirement accounts to pay bills.
- You have depleted your savings and still cannot keep up with payments
- You are facing wage garnishment or property liens due to medical debt.
If you identify with any of these situations, it may be time to file for bankruptcy.
Bankruptcy can be your lifeline
Bankruptcy is a legal process that helps people eliminate or repay their debts. Individuals filing for bankruptcy most often utilize Chapter 7 and Chapter 13. Chapter 7 can discharge most debts through the sale of your assets while Chapter 13 enables you to develop a repayment plan spanning three to five years.
Bankruptcy offers many benefits for your financial future, including an automatic stay. This legal mechanism halts creditor collection activities, providing immediate relief. Conversely, it can impact your creditworthiness, potentially leading to challenges in securing loans or credit cards.
For many people drowning in medical debt, the opportunity to start anew that bankruptcy provides outweighs these drawbacks. If you decide to pursue bankruptcy, make sure to work with a Florida attorney for legal guidance.