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It’s a well-known and well-established fact that, in America, one injury, one illness, or one accident can cause enough significant medical debt to literally bankrupt you.
Overwhelming medical debt is one of the leading causes of many Lakewood residents needing to file for bankruptcy. It hardly seems fair, especially when you consider that most people who file for bankruptcy because of medical debt had health insurance.
If you are swamped by medical debt, please contact one of our experienced Lakewood bankruptcy lawyers to discuss whether a bankruptcy filing might help you make a fresh start. Our helpful team of knowledgeable legal professionals has helped clients throughout Jefferson County in situations similar to yours file Chapter 7 or Chapter 13 bankruptcy and move forward without the burdensome weight of medical debt.
We understand the burden that debt related to medical care can place on you, your family, and your finances. During your free case consultation, we can help you explore your legal options to get some relief. Our Lakewood debt relief attorneys never try to pressure anyone into filing for bankruptcy, but we will be honest with you about the best debt relief options for your unique circumstances.
Don’t let the negative stigma surrounding bankruptcy keep you from seeking debt relief. Filing for bankruptcy is taking advantage of a legal tool established to help honest people deal with overwhelming debt and rebuild their lives. We want what is best for each client, which is why we offer a free case evaluation where you can talk to one of our CO bankruptcy lawyers without cost or obligation.
Medical debt is never something most people are fully prepared for or truly expect. After all, you can have good health insurance and still end up needing to cover one hundred percent of a medical treatment if you’re receiving care from an out-of-network specialist. When a medical emergency hits your household, the only option may be to use any financial resources you may have in order to keep your health and that of your loved ones in top condition.
It is important to understand that you are not alone if you have incurred an unmanageable amount of medical debt in Lakewood. As a matter of fact, our Jefferson 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 under specific facts and circumstances. It is important to note these answers to common bankruptcy questions are just a starting point. For specific legal advice relevant to your unique financial situation, please reach out to an experienced Lakewood debt relief attorney.
1. What is considered medical debt in Colorado Springs?
Certain debts, like student loans, child support, or alimony, cannot be eliminated by filing for bankruptcy, but our Lakewood bankruptcy attorneys don’t expect most people to be aware of that. That’s because one of the most commonly asked questions our Jefferson County area bankruptcy lawyers receive is what types of debt filing for bankruptcy will cover.
The good news for all of you Lakewood residents considering filing for bankruptcy due to overwhelming medical bills is that medical debt is considered unsecured debt, which can be discharged via Chapter 7 or Chapter 13 bankruptcy. During your case consultation, one of our Lakewood bankruptcy attorneys will go over with you any debt related to hospital care, doctor visits, prescriptions, or other similar goods or services that qualify as medical debt, to make sure that all of your dischargeable debt is included in your bankruptcy petition.
2. What type of bankruptcy do I need to file to eliminate medical debt?
During Chapter 7, debtors typically liquidate some of their property and use the proceeds to repay creditors. After debtors sell their assets to pay priority debts, any remaining unsecured debts are typically discharged, including medical debts.
Chapter 13 bankruptcy may be a better option for you if you earn a regular income that could allow you to pay off your debts over time and do not qualify for Chapter 7. Chapter 13 allows debtors to keep their assets and develop a three- to five-year plan to repay their debts.
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 who approach our Lakewood bankruptcy firm for debt relief from substantial medical bills 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 accrue debt for, it may be in your best interest to delay your filing 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 Lakewood bankruptcy attorney during your case consultation.
5. Can my paycheck be garnished for medical debt in El Paso County?
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 Lakewood, an automatic stay goes into effect which halts all wage garnishments, including those for medical debts.
If you are facing significant medical debt, there are ways to manage your financial situation. Filing for personal bankruptcy protection is certainly one of them. Contact our firm today for a personalized case consultation.
Residents of Jefferson county face financial difficulties for a variety of reasons, from inflation to unemployment and other factors. One of the most difficult and common challenges locals face when it comes to their money is medical debt. What choice is it when the options are to die or be in debt?
Over the years, the problem of affordable health care has been a topic of national debate. Even those who have insurance can struggle with medical debt, thanks to high copays and paying out of pocket for specialized care. And for people without any type of coverage, medical debt can be crippling.
If you are overwhelmed by the amount of money you owe hospitals and other healthcare providers, contact our Lakewood debt relief attorneys today to discuss your options. We will review your debts and income and tell you if we think bankruptcy would be appropriate for dealing with your financial situation.