Hiring A Bankruptcy Attorney For Peace Of Mind

3 Questions You Should Ask If You Are Considering Declaring Bankruptcy Due To Your Medical Bills

16 September 2016

Gabriel Freeman

If you are considering declaring bankruptcy because you have extensive unpaid medical bills, it is important to speak with a bankruptcy attorney to determine your options as soon as possible. It will be helpful to be aware of the total costs of making that major change to your financial situation, which debts can be included in that request to the courts and which type of bankruptcy would be the most appropriate choice for your needs. Therefore, it is a good idea to ask the following questions of any lawyer with whom you might consider working.

#1-How Much Will Declaring Bankruptcy Cost?

Unfortunately, the costs of declaring bankruptcy have often forced financially strapped individuals from getting the fresh financial start they deserve. That is frequently due to the fact that it is not always immediately obvious that in some instances, you can include part of the cost of declaring bankruptcy into the total debt, thus making payment arrangements on that portion. There could also be some financial aid for bankruptcies applications for some low-income persons or families.

Therefore, it is crucial to ask your bankruptcy lawyer not just about the full cost of declaring bankruptcy but also how much of that you would need to pay prior to accessing the benefits of declaring bankruptcy.

#2-Which Debts Are Eligible For Inclusion In Your Application For Bankruptcy?

Since in 2013, medical costs were the most common reason for declaring bankruptcy, it is crucial to understand which debts can be included in your request to the courts for financial peace. While it only makes sense that the expenses related to you, your spouse and minor children can be included in a bankruptcy application, that information may not always be as clear if you agreed to help out with an adult child's medical costs or if you have assisted with the medical expenses of a parent. If those situations are applicable to your current situation, it is a good idea to clarify which medical debts can be disposed of through with bankruptcy.

#3-Should You Declare A Chapter 7 Or Chapter 13 Bankruptcy?

While both Chapter 7 and Chapter 13 bankruptcies allow you to have a fresh start, the terms and conditions associated with both vary extensively. For instance, you may be surprised to learn that even though a Chapter 7 bankruptcy can wipe away the majority of your debt, there are income limits that apply. The income limits vary by state and your family size, and if you are deemed to earn too much by those standards, a Chapter 13 bankruptcy may be your best choice. However, a Chapter 13 bankruptcy will require you to pay some portion of your debts and therefore is often referred to as restructuring your debts.

For more information, contact Shoemaker & Dart P.S. Inc or a similar firm.

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