About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.
For many American families, the cost of healthcare is a significant expense. In fact, medical bills are the source of many personal bankruptcy filings. If you've found yourself in this unfortunate predicament, you probably have many questions concerning the process and even your future financial standing. Getting at least some of these questions answered is helpful.
A Medical Bill Is A Medical Bill
When it comes to medical bills and bankruptcy, understand that a bill is a bill. There are some people that are of the understanding that only certain types of medical expenses qualify. However, this is not the case. Medical expenses are categorized as general unsecured debts, meaning that any of these expenses is eligible for absolution through the proceedings.
Whether your bills are the result of disease treatment or a necessary surgical procedure, bankruptcy may be able to offer you the assistance you need. This is the case even if you have healthcare coverage.
You Still Need To Qualify
Even though medical bills are eligible for depletion in a bankruptcy, this still does not mean that you automatically qualify. Even if you have an absorbent number of bills, the courts will still require proof that you either don't have any way of paying the bills or that an attempt to pay the bills would put you in an even worse financial situation.
Be prepared to provide a listing of all your expenses and income sources to see if you even qualify. This process is known as the means test, which will determine what form of bankruptcy you qualify for.
Try Other Methods
Keep in mind that bankruptcy should be your last resort. Many healthcare providers and organizations are willing to set up payment plans that can help you pay down your debt. There are also other charitable organizations that may be able to help if you qualify.
While a helpful solution when you have no other options, it's important to understand that bankruptcy does come with long standing consequences, which may involve you giving up some of your property or assets. If this is not a pill that you can easily swallow, it's important to try several other methods to pay down your debt first.
If medical bills seem to be getting the best of your finances and you need help, consider speaking with a law firm like Greg Dunn Bankruptcy Attorney. An experienced attorney can evaluate your situation and help you determine the best course of action going forward.
Share1 August 2017
