Bankruptcy And Unforeseen Medical Emergencies

Bankruptcy And Unforeseen Medical Emergencies

Medical bills may overwhelm anyone. From the simplest procedures to the most complicated, medical bills are exorbitant and may easily overwhelm any person. Unforeseen medical emergencies may devastate even the most financially stable person as bills may quickly accumulate. While many people do not realize it, bankruptcy is an effective solution for dealing with medical bills that typically reach the medium to higher five figures.

Medical debt is one of the most common reasons why individuals file Chapter 7 bankruptcy cases. The situation of having to deal with a medical emergency and an abundant number of medical expenses is extremely stressful. In addition to the physical, mental, and emotional stress of treating injuries after an accident or a sudden, serious illness, individuals must consider how they will pay all the unaffordable medical bills that they are quickly compiling. Most people cannot envision how they are going to pay these bills other than making payments that are late and overdue if they make any payments at all.

Even the most well-intentioned individual will encounter difficulties when facing this extensive debt, the payment of which may seem insurmountable. Chapter 7 bankruptcy is intended to assist and provide relief for Americans who face these and similar circumstances. The Morrison Law Group is here to assist those with burdensome medical debt. Our firm has helped many in this situation find relief and gain a fresh start.

Chapter 7 bankruptcy allows debtors to discharge most unsecured debts such as medical bills. These debts will typically be discharged in their entirety which often equates to savings of tens of thousands of dollars. At what cost? Many individuals who file Chapter 7 have their cases deemed “no-asset” cases and surrender nothing to the trustee for liquidation – sale with the proceeds used to pay creditors.

In addition to medical bills, Chapter 7 bankruptcy also eliminates debts such as credit card debt, personal loans, and judgments (but not judgment liens).

Chapter 7 bankruptcy requires debtors to meet specific criteria to be eligible. These vary between states, but generally, prospective filers must complete and “pass” the means test, which analyzes a person’s income, expenses, and household size. To qualify for Chapter 7 bankruptcy in Utah, household income should fall below Utah’s median income threshold.

Also, to be eligible to file a Chapter 7 bankruptcy case, an individual may not have a completed Chapter 13 in the past six years or a Chapter 7 in the past eight years. Also, an individual may not have a dismissed Chapter 7 or Chapter 13 petition in the past 180 days as the result of a voluntary dismissal or failure to comply with court orders.

The Morrison Law Group’s attorneys are skilled in evaluating a prospective filer’s qualifications, which may be a fairly involved process. It requires the collection, organization, and analysis of substantial information and its underlying documentation, which may be a fairly involved, complicated process. A filer must submit information that is complete and accurate or otherwise risk dismissal of their case.

If you have unpaid medical debts that seem insurmountable, discuss your situation with an experienced bankruptcy attorney at the Morrison Law Group. You can discuss your situation at a free consultation to determine whether a Chapter 7 bankruptcy case is your best option. Theron Morrison has helped 8,000 people file bankruptcy and gain a fresh start. Call 801.456.9933 to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

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Theron Morrison

Utah’s top bankruptcy and consumer protection attorney.