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If a medical emergency has forced you to miss work or even lose your job, financial stress is probably weighing heavily on your mind. So much so, perhaps, that you can’t focus on your number one job after a medical emergency– your job of getting well again.
Mounting debts are the last thing you want to deal with when you’re fighting through a medical crisis. Unfortunately, like most creditors, hospitals and doctors’ offices are businesses, and they’re in the business to make money. While medical bills don’t accumulate interest like credit cards do, if you can’t make payments on your medical bills, you will probably find yourself facing some of the most aggressive bill collectors in the industry.
Our Fort Collins bankruptcy attorneys have clients with all sorts of medical debt. Some debts are owed directly to hospitals while others are owed to local doctors or specialty care clinics. These debts were due to anything from car accidents, sports injuries, or even the birth of a child.
Some of the biggest mistakes people with medical debt make are ignoring hefty medical bills or waiting too long to get help. If you are overwhelmed by medical debt in Larimer County, it may be a good idea to discuss your situation with an experienced Fort Collins bankruptcy attorney.
It doesn’t matter how cautious your financial planning may be; a serious medical problem can quickly wipe out your savings and leave you deep in debt.
Most people don’t want to file for bankruptcy. For many Larimer County residents who have been able to pay their bills with relative ease for most of their lives, being faced with medical bills that they cannot repay can be frustrating and upsetting.
But it’s important to understand that you are not alone if you have incurred an unmanageable amount of medical debt in Fort Collins and need to file bankruptcy to get a fresh start. As a matter of fact, our Larimer County bankruptcy attorneys have helped so many clients clear medical debt through bankruptcy that we’ve compiled a list of the most commonly asked questions (with answers) about medical debt and bankruptcy for any prospective client reading this website.
Before continuing to those questions, we should warn you that even a general answer to a medical debt or bankruptcy-related question can change when applied to different circumstances and situations. It’s important to note that these answers to common bankruptcy questions are just a starting point. For specific legal advice relevant to your unique financial situation, please contact our experienced Fort Collins bankruptcy attorneys.
1. What is considered medical debt in Fort Collins, Colorado?
The cost of healthcare is a significant financial burden for many Larimer County residents. In bankruptcy, medical bills are treated similarly to credit cards in that they’re considered general unsecured debts. This means that medical bills are a type of debt that can be eliminated through a bankruptcy filing.
But what is considered medical debt? In general, any debts related to hospital care, doctor visits, prescriptions, or other similar goods or services qualifies as medical debt. Of course, that’s just a small example of what can be classified as medical debt, so if you have any healthcare-related bills that you think may qualify for bankruptcy, please share that information with your Fort Collins bankruptcy attorney during your case consultation. We can help you figure out what will and won’t be covered by Chapter 7 or Chapter 13 bankruptcy.
2. What type of bankruptcy do I need to file to eliminate medical debt?
Depending on your circumstances, there are two different types of bankruptcy that you may be able to file to eliminate your medical debt, Chapter 7 or Chapter 13 bankruptcy.
In Chapter 7 Bankruptcy, also known as liquidation bankruptcy, filers hope to earn a discharge of most or all of their unsecured debt by allowing a court-appointed bankruptcy trustee to liquidate all of their non exempt assets to pay down their debts.
In a Chapter 13 bankruptcy, also known as a “wage-earners bankruptcy” the court requires the borrower to repay debt using a court-structured repayment plan. This repayment plan generally lasts anywhere from 3 to 5 years. Payday loans will be treated as any other unsecured debt and may be included in the repayment plan, allowing the debtor to repay creditors over a period of time from future income.
One major benefit of filing for either Chapter 7 or Chapter 13 bankruptcy in Larimer County is the automatic stay. The automatic stay was created by federal bankruptcy law to act as a bar to a creditor collecting a debt. So if medical debt collectors have been harassing you, filing for Chapter 7 or Chapter 13 bankruptcy can bring you immediate relief from those calls, e-mails, and letters.
3. Can I file for bankruptcy in Lakewood if I only have medical debt?
According to the Federal Bankruptcy Code, there is no such thing as “medical bankruptcy.” This, however, should not deter you from seeking debt relief through bankruptcy. Medical bankruptcy is a term used by bankruptcy lawyers to describe a bankruptcy that is caused by excessive medical debt. We’ve found that most clients with overwhelming medical debt that retain the services of our experienced Fort Collins bankruptcy lawyers also have other debts that can be discharged via bankruptcy.
4. When should I file for medical debt bankruptcy?
In general, if you have an ongoing medical problem that you will continue to amass debt for, it may be in your best interest to delay filing a bankruptcy petition until all medical treatments are complete. Once you petition the court for bankruptcy, no new debts may be added to your claim. So if you know that you’re going to have more medical debt in the near future, you may want to wait to file bankruptcy as this will help you to ensure that you are not saddled with additional debt after completing the bankruptcy process. Of course, this is just a general answer, and may not apply to people who can no longer wait to file for bankruptcy. Unfortunately, this type of question has no universal answer and should therefore be discussed with your Fort Collins debt relief attorney during your case consultation.
5. Can my paycheck be garnished for medical debt in Fort Collins?
Unfortunately, yes, your paycheck can be garnished for unpaid medical debt in Colorado. Creditors to whom you owe money can garnish your wages, including credit card companies, medical offices or hospitals, student loan lenders, and tax agencies. On the bright side, once you file for bankruptcy in Larimer County, an automatic stay goes into effect which halts all wage garnishments, including those for medical debts.
It can be impossible to focus on your health when you’re stressed out by a mountain of debt and being hounded by creditors looking to collect payments that you cannot afford. If this sounds familiar to you, it’s in your best interest to take action before you lose your house, your car, or your health due to mounting medical debt.
As detailed throughout this webpage, medical debt can easily be eliminated by filing for Chapter 7 or Chapter 13 bankruptcy. Contact our firm today for a free case evaluation with one of our experienced Fort Collins bankruptcy attorneys.
It isn’t fair that so many Americans fall into unmanageable debt because of medical bills. It’s maddening that most of those people have health insurance! However, there is a way out. Imagine eliminating your medical bill debt once and for all. If you would like to turn that mental image into a reality, contact our law office today. One of our CO bankruptcy lawyers is ready to help you take the first step.