- September 21, 2012
- Posted by: Richard Feinberg
- Category: Types of Bankruptcy
Medical debt is becoming one of the fastest growing sources of debt among Americans today. In fact, numerous Tampa bankruptcy cases are filed each day in order to bring financial relief to those who have or are still suffering from a costly medical condition. Although medical debt can be burden, it doesn’t have to be.
The average ambulance ride and overnight in the emergency room stay can cost upwards of $25,000. With so many uninsured or underinsured people today, this debt can quickly be the demise of one’s financial situation. Although medical debts can be astronomically high, the good news is that they are one of the easiest to resolve.
In bankruptcy, medical debts are easily discharged in either Chapter 7 or Chapter 13 cases. The reason is that these debts are unsecured and the creditors have little recourse for consequence. Aside from sending the account to collections and reporting the debts to credit bureaus, these creditors have no repossession and very limited wage garnishment rights. Therefore, bankruptcy can stop collection calls and develop a plan of action to wipe out medical debts.
Even if bankruptcy isn’t the desired option, these debts can still be managed quite easily through debt negotiation. Most medical providers are aware of the trouble caused by poor or no insurance and are often willing to provide payment plans that are affordable, or even settle debts for less than owed. Medical debt negotiation is possible, it just takes effort and a lot of patience.