Are you overwhelmed by medical debt in Colorado?
No one plans to break a leg, get cancer, or undergo emergency surgery. Even some of the most financially stable people stumble when hit with an eye-wateringly large bill for medical services.
The cost of healthcare in the United States has increased in recent years. As a result, Coloradans have taken on large amounts of medical debts and bills that they cannot afford.
While Colorado is making progress towards holding healthcare providers responsible for transparency with billing, the state does not require hospitals to notify patients of charity care policies before collecting payment for services and also doesn’t prohibit medical service providers from sending an unpaid bill to collections when a patient is appealing to insurance or applying for financial assistance. This means that thousands of residents in need of emergency care throughout the state often get stuck with massive bills that they struggle to pay.
Despite the financial and emotional stress that may come with medical debt, the good news is that you do have some options for debt relief. If you’re considering bankruptcy due to overwhelming medical debt, contact our Colorado debt relief lawyers for a no-cost case evaluation.
Read below for frequently asked questions on filing bankruptcy regarding your medical bills and medical debt. The answers you find here serve as a good jumping-off point in gathering the information that you need to have some basic knowledge about bankruptcy and medical debt, but nothing can take the place of getting first-hand information about your specific case from an experienced CO bankruptcy attorney. If you are considering bankruptcy as a solution, contact our firm to get in-depth answers to all your Colorado bankruptcy questions.
Medical debt is a debt you owe for medical services. This includes hospital care, doctor visits, prescriptions, or other similar goods or services. 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.
There is no such thing as a “medical bankruptcy,” or a bankruptcy limited to just resolving medical debt. However, you may still be able to have your medical debts discharged in either a Chapter 7 or Chapter 13 bankruptcy filing. You cannot limit a bankruptcy filing to deal only with your medical debts. When you file for bankruptcy, all your debts must be included in the bankruptcy documents filed in your case.
Medical bills are known as “unsecured” debts, meaning you did not have to put up any collateral when you incurred the debt. Other common unsecured debts that bankruptcy can discharge include credit card bills and personal loans.
If you have acquired a significant amount of medical debt, it may be in your best interest to file for Chapter 7 bankruptcy—as this process would allow you to discharge most, if not all, of your unsecured debt over a short period of time. Once you have liquidated your non-exempt assets and used the proceeds to repay your creditors, the court will order a discharge of all remaining debts. This, in turn, would free you of the legal obligation to repay them.
While Chapter 13 bankruptcy will not eliminate your unsecured debt as quickly as Chapter 7, it is still a viable option for those who are unable to get out from under their medical debt but don’t qualify for Chapter 7 bankruptcy in Colorado.
Often referred to as a “reorganization bankruptcy” or a “wage-earners bankruptcy,” Chapter 13 bankruptcy allows you to develop a debt repayment plan that would be executed over 3 to 5 years. As long as you follow the decided guidelines of your bankruptcy plan, you should be able to receive a discharge of all remaining debts once the process has been concluded.
The only way to get a clear answer to this question is to contact an experienced Colorado bankruptcy attorney, as protection may depend on the type of disability benefits that you are receiving.
Generally, Social Security Disability and VA Disability are protected under federal law. Thanks to Colorado’s generous bankruptcy exemptions, any claim for public or private disability benefits is now protected up to $5,000 per month in Colorado.
Unfortunately, yes, your paycheck can be garnished for unpaid medical debts in Colorado.
Creditors to whom you owe money can garnish your wages, including credit card companies, unpaid medical bills, child support, student loans, and tax agencies.
The good news is, once you file for bankruptcy in Colorado, an automatic stay goes into effect, halting all wage garnishments, including those for medical debts.
Wondering whether you will lose everything due to medical bills is unnecessary. If you’re struggling with medical debt, filing for bankruptcy may be the best way for you to regain your financial footing. Contact an experienced Colorado debt relief attorney for a free financial consultation and let us answer all the questions you have about bankruptcy and your debt relief options.
It’s no secret we need major reforms in our healthcare system, reforms that stop hospitals and insurance companies from viewing sick people and their families as sources of profit and nothing more.
Each year, thousands of people file for bankruptcy due to the astounding cost of an unexpected, serious medical condition. Many people who are struggling with medical debt find it difficult and stressful to worry about finances while trying to recover from their injury or illness. If this sounds familiar, and you need immediate debt relief help, contact our Colorado bankruptcy lawyers.
Having helped hundreds of Coloradans with overwhelming medical debt throughout our decades of combined experience practicing bankruptcy law, we understand what you are going through. Our friendly, knowledgeable staff of legal professionals will guide you step-by-step through the bankruptcy process, so you can concentrate on what really matters.
To learn more about eliminating medical debt through bankruptcy, contact our Colorado bankruptcy attorneys today for a free case evaluation. Filing bankruptcy can set you up for future financial success, and we’ll put our experience to work and help you begin to put all the financial stress and frustration behind you during this time in your life.
