Colorado’s 100% Online Bankruptcy Law Firm
No offices appointments. No Court Appearances.
Schedule a Consultation
Schedule a Consultation
Few people are prepared for the cost of a serious medical emergency in Colorado. In fact, a recent report from the Colorado Department of Healthcare Policy and Finance found that Colorado has the sixth highest healthcare costs in the entire United States. These high costs quickly add up and can leave many feeling overwhelmed and unsure of their financial future.
This stress is compounded by the fact that many injuries and illnesses come with physical impairments that impact one’s ability to earn an income. Before long, the expenses pile up, the bills get behind, and this leads to compounding debt. However, not all hope is lost. With the help of an Adams County attorney, you can overcome this period of hardship and find a way to get your finances back on track.
You are not alone in the uncertainty of medical debt. With the high costs of medical debt in Colorado, many Thornton residents will seek the help of an Adams County bankruptcy attorney. Bankruptcy attorneys can help you to determine the best legal course of action to take when your medical debt becomes overwhelming. In fact, in Colorado medical debt is one of the top five reasons people declare bankruptcy within the state.
In Colorado, you have several options available to you for tackling medical debt. Speak with your Thornton bankruptcy attorney to get the best plan for your unique situation. Your bankruptcy lawyer will be able to provide you with guidance that will protect your rights and financial interests. Some options include:
1. Negotiate With The Creditors – Speak to creditors about your financial situation. You may be able to negotiate a lower payment or a system of payment plans that cover the debt. This is the most ideal situation for everyone but may not be available to all.
2. Work With An Advocate – Your Adams County bankruptcy attorney can help to put you in touch with a medical bill advocate. Medical bill advocates help to review your bills and make sure that you are not being overcharged. They may also help you connect with organizations that provide relief for medical debt assistance.
3. Declare Bankruptcy – Finally, you can declare bankruptcy. Bankruptcy is a legal system that helps you clear your debt guided by U.S. Code Title 11. Two primary forms of bankruptcy are recommended for individuals with extreme medical debt cases, Chapter 7 and Chapter 13. Chapter 13, which is also called a “reorganization bankruptcy”, arranges a payment plan system to eliminate your debt. Chapter 7, otherwise referred to as “liquidation bankruptcy”, liquidates your assets and uses the proceeds to offset your debts. Your Adams County bankruptcy attorney can investigate your unique situation and advise you on which bankruptcy system may be most suitable for your debt.
Chapter 13 bankruptcy is a system where you get to keep your property and assets on the condition you repay your creditors. The repayment plan is determined by the bankruptcy courts in the District of Colorado. Chapter 13 is used on both secured debts and unsecured debts, but does not include debts like child support, alimony, and student loans. You will make regular payments on the schedule determined by the court and once the period is over, your debt is eliminated.
Medical debts are considered to be unsecured debts. When you file for Chapter 13 bankruptcy, you will only pay a portion of your medical debt and in some cases pennies on the dollar. The downside is that bankruptcy does impact your credit history and worthiness. Chapter 13 bankruptcy stays on your credit report for a period of seven years.
Another option to discuss with your Thornton area bankruptcy attorney is Chapter 7 bankruptcy. Chapter 7 bankruptcy can also help you overcome your medical debts as long as you meet certain legal qualification standards. Qualifications are stringent, and your attorney can investigate your case to determine if you’re likely to meet them. With Chapter 7 bankruptcy, debtors liquidate their assets and the proceeds are used to pay medical debts under a court-mandated schedule. This form of bankruptcy stays on a credit report for ten years.
Both Chapter 13 and Chapter 7 can help you to get rid of medical debt in Thornton, Colorado. In general, Chapter 13 bankruptcy is recommended for those who earn a regular income or do not qualify for Chapter 7. Chapter 7 is more often recommended for individuals who cannot repay a portion of the debt. A consultation with a Thornton bankruptcy attorney can determine which form of bankruptcy works best for your debt situation.
Once you’ve consulted with your Thornton bankruptcy attorney and determined the best course of action, you will need to determine when the best time to file may be. Keep in mind that only debts dated before the petition filing will be included in the bankruptcy. When considering medical debt, it may be best to wait until you know the full scope of your medical situation.
If your debts are becoming unmanageable and you are at risk of foreclosure or the seizure of assets, you should take action as quickly as possible. Your Thornton bankruptcy attorney can help you to determine when the best time to file may be.
When you are facing a lot of medical debt, speaking to an Adams County bankruptcy attorney can provide a great deal of relief. They will help you to review your options, understand your rights, and protect your financial future.
Working with a Thornton bankruptcy attorney is straightforward. First, you will start with an initial consultation that helps your attorney understand the severity of your medical bills. After this, they will review your options with you and answer any questions you may have. If you proceed with bankruptcy, they will guide you through every step of the process. Together, you will be able to overcome your medical debt.