Research shows that 137 million Americans are facing medical debt leading to financial hardship. In fact, overwhelming medical bills are the number one reason Americans consider filing for bankruptcy or raiding their retirement funds. Because of this painful reality, it is essential for individuals facing significant medical bills to understand their different options and legal protections.
One option is to try to negotiate medical bills and another option to consider is personal bankruptcy protection which can help those struggling with significant medical debt, and other types of debt, enjoy debt relief. Filing for bankruptcy can help give filing parties breathing room through the automatic stay that prevents creditor collection actions during bankruptcy but also provides a fresh financial start through a debt discharge at the end of the process which can address medical debts and other debts.
There are two different types of personal bankruptcy protection that can help those struggling with medical debt and struggling consumers generally. Chapter 13 bankruptcy can help those considering filing for bankruptcy, who have a reliable source of income, reorganize that debt so they can repay it over a more manageable period of time. Chapter 7 bankruptcy, as an alternative for those who may not have a reliable source of income, can also help with medical debt through the liquidation bankruptcy process.
Bankruptcy protections can help with medical debt and other types of debt many struggling consumers are facing. For anyone facing medical bills day after day, bankruptcy protection is an option that may be able to help that struggling consumers should certainly be familiar with and understand.