Nearly one-third of Americans are carrying a certain form of medical debt. It’s a debt accumulated because of an unpaid medical bill. If you have a serious medical condition, you may incur thousands of dollars in medical costs because of your treatment. Medical debt, unfortunately, is a serious issue that a Chapter 7 lawyer in Los Angeles can help. Although a lawyer can’t lend you money to pay for your medical bill, she can assist you in strategizing on what to do to resolve your debt.
Will Chapter 7 Lawyer in Los Angeles Recommend Filing for Bankruptcy?
Bankruptcy isn’t the only solution to the challenges of having a gargantuan of debt. There are various options that you can choose from and Karine Karadjian can help you find the best option to manage your medical costs. One of the options is to settle it with a medical provider. If your bill was the result of uninsured healthcare costs, then your provider might waive a certain percentage of your bill. Some hospitals can discount bills for their uninsured patients. You may also ask your creditor if it has an assistance program that you may qualify for. This type of program will reduce your hospital care. But the reduction will depend on your income.
If your creditor won’t negotiate, it might be time for you to think about filing for bankruptcy. After all, your good credit will still be taking a hit because of a collection action that may appear on your credit report. Your creditor may sue you. And if it gets a judgment, it is allowed to garnish your wages and other ways to collect your debt. Two-thirds of those who filed for bankruptcy said that the major contributors to their medical debt are their medical issues. Indeed, the Affordable Care Act has been implemented years ago but it has not improved the high cost of healthcare in the US. Even if you have health insurance, it may still not be enough to protect you from a financial downfall.
What Type of Bankruptcy to File?
Before you even file for bankruptcy, you need to know what type of chapter you need to fill out. That’s why we encourage you to consult a lawyer before filing for bankruptcy. Here at Karine Karadjian law office, we offer debt consultation first. If bankruptcy is indeed the ideal option, then chapter 7 lawyer Karine Karadjian may recommend chapter 7. But it’s an ideal option if you don’t earn a lot of money. You may have assets but with little equity. You can file for chapter 7 on substantial debt. It will wipe out your medical debt as it’s an unsecured debt.
On the other hand, if you don’t qualify for it, our lawyer may suggest chapter 15. With this option, there’s a repayment plan that can help you pay for your medical debt. But it will only be a portion of your medical debt that will be wiped out. To know which chapter to file for, make sure to consult our chapter 7 lawyer in Los Angeles today. For a free consultation, contact us at (949) 565-4707 or (818) 960-6460.