Bankruptcy protections can help consumers struggling with medical debt. Tennessee is the leading state in the nation for medical bankruptcies. The director of a Tennessee nonprofit that helps Tennessee families with health care issues noted that some families are having to make the difficult choice between food and medicine. He added that 70% of Tennesseans have some type of medical debt. A new initiative was recently started in Tennessee to help those struggling with crippling medical debt. Overall, the state leads the nation in medical bankruptcies.
Bankruptcy options can help struggling consumers with various forms of debt, including medical debt. Personal bankruptcy protection can help those with overwhelming debt, including medical debt, address their concerns and enjoy debt relief. There are two main types of personal bankruptcy protection available to struggling consumers including Chapter 7 liquidation bankruptcy protection and Chapter 13 reorganization bankruptcy protection.
Which type of personal bankruptcy protection is best for the struggling consumer depends on their situation and circumstances but both types can help them achieve debt relief. In addition, both Chapter 7 bankruptcy protection and Chapter 13 bankruptcy protection can help with concerns the filing party might have like medical debt. One type allows the filing party to liquidate non-exempt assets to repay creditors and the other type of personal bankruptcy protection allows the filing party to reorganize their debt to repay it over time.
Both types of personal bankruptcy protection can provide a fresh financial start and relief from crushing debt such as medical debt. Personal bankruptcy options and protections are an important resource for consumers that they should be aware of when considering options to help with medical and other types of debt.