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Chances are if you’re visiting this website you probably have significant medical debt and are considering different strategies to get out of it. Many Colorado residents are able to negotiate their debt, and if this option is open to you, by all means, do it. You should always verify that every bill is correct and that you’ve received all the services you’re being billed for.
But some other options, like taking out a personal loan or paying for your necessary medical treatments with high-interest credit cards, are the equivalent of putting a band-aid over a much larger problem. Bankruptcy is the concrete resolution you are looking for. It was designed to offer Colorado Springs residents a way out in exactly these situations.
Filing for bankruptcy in El Paso county to erase medical debt is more common than you may think. Medical debt is one of the top 5 reasons people file for bankruptcy in Colorado. In fact, medical bills routinely devestate the finances of American families. Studies indicate that as many as 66% of bankruptcies are caused by medical debt on the national level.
If you are ready to lift the burden of medical debt from your shoulders, our experienced Colorado Springs bankruptcy attorneys can help. Contact us to find out more about your bankruptcy options during your no-cost case evaluation. During your consultation, one of our knowledgeable bankruptcy attorneys will discuss your medical bills and other debt and formulate a plan that works for you.
We’ve stood by thousands of families in El Paso County as they’ve rebuilt financially through Chapter 7 and Chapter 13 bankruptcy, and we will stand by you too. Contact us today to hear how we can help.
If you’ve recently received a hospital or doctor’s bill, then you know the cost of medical care in Colorado is at an all-time high. If you’re already struggling with debt and are unsure how you’re going to pay a sky-high medical bill, you’ve come to the right place.
There are a lot of concerns and questions associated with bankruptcy and medical debt. Many of our clients in Colorado Springs have the same questions which are why we have consolidated a lot of the most common medical debt bankruptcy questions below.
But you should know 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 Colorado Springs bankruptcy attorney.
What is considered medical debt in Colorado Springs?
Quite simply, medical debt is the payment you owe for rendered medical services. This includes hospital care, doctor visits, prescriptions, or other similar goods or services. Despite what you may have been led to believe, medical debt can be incurred whether you’re insured or not because even if you have health insurance, it may not cover all costs for medical services, including copays or extensive hospital stays.
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. 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.
Can I file for bankruptcy in Colorado if I only have medical debt?
When clients ask us this question, we sometimes like to tell them that bankruptcy doesn’t have a pick-and-chose option when it comes to settling debt. There is no such thing as a “medical bankruptcy,” or a bankruptcy limited to just resolving medical debt. When you file for bankruptcy, all of your debts must be included in the bankruptcy documents filed in your case. Believe us when we say that this is good news! Most clients who approach our Colorado Springs debt relief firm for bankruptcy services have other debts (such as credit card debt or cash advance loan debt) that qualify for discharge via bankruptcy.
When should I file for medical debt bankruptcy?
This is a tricky question that should be discussed with an experienced Colorado Springs bankruptcy attorney. In general, since you are only able to discharge debts that have been included in your bankruptcy petition, it may be in your best interest to delay your filing if you know that you will be incurring new medical debt soon. This will help you to ensure that you are not saddled with additional debt after completing the bankruptcy process.
However, f your debts have become unmanageable are you find yourself unable to hold off any longer, it is important to note that you have the option to file for bankruptcy a second time in the future, if necessary. Depending on the chapter that you file under, however, you may be required to wait anywhere from 2 to 8 years before you can file again. That being said, you should not hesitate to go over all of your options with your Colorado Springs bankruptcy attorney.
Can my paycheck be garnished for medical debt in Colorado Springs?
We hate to be the bearer of bad news but, yes, your paycheck can be garnished for unpaid medical debts in El Paso county.
Creditors to whom you owe money can garnish your wages, including credit card companies, medical offices or hospitals, student loan lenders, and tax agencies. The good news is, once you file for bankruptcy in Colorado Springs, an automatic stay goes into effect, halting all wage garnishments, including those for medical debts.
Unexpected or sudden medical expenses can be a huge financial setback. If you have evaluated your financial options and believe bankruptcy is the best choice for managing your medical debt, it’s a good idea to seek legal help as soon as possible. Our Colorado Springs debt relief attorneys can help you evaluate the state of your finances and navigate the bankruptcy process with confidence.
When someone is struggling to pay off medical bills, it can be difficult to know where to turn to for help. This is a burden that truly no one asks for, and our country’s for-profit health insurance system causes some patients to take on completely unexpected five and even six-figure debt
amounts, for a necessity they had no choice or bargaining power over.
Our Colorado Springs bankruptcy attorneys work with El Paso county residents struggling with their finances due to unexpected medical bills. We have extensive experience with the federal bankruptcy code, and our team has the resources and knowledge needed to help you obtain a fresh financial start. In addition, we offer initial consultations at no cost and no obligation to you, so contact us now to discuss the details of your bankruptcy case with a dedicated Colorado Springs medical debt relief lawyer.