When you are facing medical debt, it can become a financial burden. Not only have you struggled with your health, but now you have to find a way to pay the bills. Bankruptcy may be one type of relief option. With that, you can get a fresh start. If you want to know more about bankruptcy and medical debt in Ohio, here is how this process can help you.
The Medical Debt Crisis
Even with the best medical insurance, it might only cover some of your expenses. Prescription medications, emergency services, and other healthcare costs can lead to insurmountable debt. These medical expenses can put a financial strain on many residents in the state.
While some may see bankruptcy as a last resort, it can be a viable solution. You have two options in Ohio: Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is also known as liquidation bankruptcy. This process involves the liquidation of non-exempt assets to pay off creditors. After that, the remaining qualifying debts are discharged. Since medical debt is considered an unsecured debt, it is eligible for discharge under Chapter 7.
If you are looking for quick relief, this is a fast process. In most cases, it can take a few months to provide relief. However, not everyone qualifies for Chapter 7. Your income and expenses will determine your eligibility.
If you do not meet the eligibility criteria for Chapter 7 or want to repay a portion of your debts over time, Chapter 13 bankruptcy is an option. The court will approve a repayment plan. You will make monthly payments over three to five years. All that medical debt is consolidated into one payment. Chapter 13 allows you to retain your assets while addressing the medical debt issue.
Will This Impact Your Credit?
While you may worry about how bankruptcy will impact credit, there are adverse effects of unpaid bills. Additionally, any non-payments will result in the collection agencies contacting you and even garnishing your wages. Bankruptcy will temporarily dip your credit scores, but you will have an opportunity for a new start. Over time, you can rebuild your credit and financial health.
How to Start the Bankruptcy Process
If you are ready to begin the bankruptcy process, contact an attorney. A trained and skilled legal professional can help you find the right option for your financial needs. For example, not everyone will qualify for a specific type of bankruptcy. You can find one that can help you manage your debt by exploring your options.
Options for Bankruptcy and Medical Debt in Ohio
If you struggle with healthcare-related financial problems, you can find hope through bankruptcy. Chapter 7 can help discharge unsecured debts, while Chapter 13 offers structured repayment plans. By filing for bankruptcy, you can focus on a healthier future and achieve financial stability.
If you are facing the burden of medical bills and want to consider bankruptcy, the team at Axelrod Law Office in Lake County, OH, can help. We have experience with both Chapter 7 and Chapter 13 bankruptcy cases. Call our office at (440) 271-8126 or submit a contact form to schedule a free, confidential legal consultation.