As we take steps to recover from the pandemic that has assailed the world for almost two years, it is undisputed that the effects of COVID-19 will be felt for some time to come. One frequently overlooked or unspoken side effect of the pandemic is the large medical debts left in its wake. On April 28, 2021, CBS News reported that “a growing number of Americans were being pursued by debt collectors over their medical bills during the last year.” Furthermore, CBS News reports that an additional 2.5 million people’s medical debts were sent to collections. If you are one such American, do not lose hope. There are options such as negotiating an affordable payment plan or exploring relief from the debt through bankruptcy. Bankruptcy is a useful tool for resetting your financial life and allowing you to move forward with the added constraints of these medical bills.
Bankruptcy is a process through the Courts to provide relief for individuals who are unable to pay their debts. There are many different chapters of bankruptcy, but the most common are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy For Medical Debt After COVID-19
Chapter 7 is great for individuals with little to no assets or for individuals looking to walk away from heavily encumbered assets without the risk of future liability. This includes individuals who are burdened by health care bills related to COVID-19 or other health conditions. The chapter 7 process is comparatively short with most Chapter 7 bankruptcy cases lasting about 3 months.
Chapter 13 Bankruptcy For Medical Debt After COVID-19
The chapter 13 process, on the other hand, tends to last three or five years. It can be used to try to save homes from foreclosure or for individuals to structure repayment plans to address outstanding debts ranging from mortgages, auto loans, and outstanding income taxes owed to the Internal Revenue Service to medical bills and credit cards. Chapter 13 may result in repaying only pennies on each dollar of general unsecured debt owed.
Which bankruptcy is best for you is dependent on what is going on in your personal and financial life. To determine the best bankruptcy option for tackling your debts, it is best to discuss the specifics of your situation, both personally and financially, with an attorney experienced in debt-related matters. Together, you will be able to determine which debt resolution method works best for you and your family.
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How Our Bankruptcy Attorneys in Fort Lauderdale Can Help
Loan Lawyers has helped over 7,000 South Florida homeowners and consumers with their debt problems, we have saved over 3,000 homes from foreclosure, eliminated $100 million in mortgage principal and consumer debt, and have recovered over $25 million dollars on behalf of our clients due to bank, loan servicer, and debt collector violations, negligence, and fraud. Contact us for a free consultation to see how we may be able to help you.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
