Lawrence ‘D’ Pew, Bankruptcy Attorney, Phoenix, AZ, on Medical Debt Relief
Illness, surgery, and accidents requiring hospitalization can all wreak havoc with personal finances. You may have been on solid financial footing, managing your income and expenses without significant worries, until that medical event pulled the rug out from under you. Lawrence ‘D’ Pew, bankruptcy attorney, Phoenix, AZ, has helped many clients who found themselves dealing with unexpected medical expenses.
Accidents and Health Problems Can Strike Anyone at Any Time!
Maybe you, your spouse, or your child has had major medical problems. A cardiac condition requiring open-heart surgery. Cancer requiring chemotherapy or radiation. Maybe you were involved in a vehicular accident and are now unable to work. Perhaps your child has a serious illness requiring extensive pediatric care.
If you had medical insurance, it is unlikely that your insurer covered 100% of the medical expenses. When medical insurance doesn’t cover the cost of treatment, then healthcare providers come back to you demanding payment. Maybe you didn’t have health insurance coverage for the medical event that occurred and you have no money to pay for past, present, or future care. More often than not, unpaid medical bills are turned over to a collection agency very quickly. By seeking relief from these debts with a Pew Law Center bankruptcy attorney — Phoenix, AZ — you will get the fresh financial start that you and your family desperately needs.
Medical Problems and Spiraling Financial Woes
As a bankruptcy attorney (Phoenix, AZ), Lawrence ‘D’ Pew has observed over the years that clients with significant debts almost always find their financial problems compounded by illness or injury.
- First, there is the high cost of medical care. Most of us facing serious medical problems would focus on getting the necessary treatment first, and worry about the cost later. And in most cases, we have no idea what the cost will actually be!
- Second, medical problems frequently lead to lost wages. Even if you are a two-income couple, the loss or reduction of one spouse’s income can completely derail the family’s finances.
An experienced Pew Law Center bankruptcy attorney, Phoenix, AZ, will tell you that, although you may receive some income from workers’ compensation or private insurance, eventually that money stops. It was probably not sufficient to cover more than basic cost of living expenses like food, fuel and shelter anyway. When you are unable to work or your spouse is unemployed as a result of health problems, it doesn’t take long for financial matters to spiral out-of-control. Add that to the medical debts, credit card bills, mortgage payments, and car loans, and bankruptcy becomes a very rational solution.
Are Medical Debts Dischargeable in Bankruptcy?
“Yes,” responds Lawrence ‘D’ Pew, bankruptcy attorney, Phoenix, AZ, “medical debts are dischargeable in bankruptcy.” Like credit card debts, medical debts are a type of unsecured obligation. (By contrast, a home mortgage is secured by the property; an automobile loan has a security interest in the collateral associated with the debt.)
When Medical Bills Are Out-of-Control, the Pew Law Center’s Bankruptcy Attorney, Phoenix, AZ, Files Chapter 7 or 13
Why file for bankruptcy? Medical expenses from an extended illness can swiftly put you underwater with your bills. Emergency medical care for anyone in your family — your spouse, your children, or yourself — can put you way behind in your other payments. An ambulance, a week in the hospital, ongoing out-patient care and, before you know what has happened, you’ve incurred tens of thousands of dollars in medical bills that you have no realistic way of paying. Interest mounts on all of your debts and, the next thing you know, you’ve lost control of your finances.
But there is hope. You can get things back to normal. When you need help from the Pew Law Center’s bankruptcy attorney, Phoenix, AZ, you will get a fresh financial start under the U.S. Bankruptcy Code.
Which Chapter is Right for You?
- Chapter 7. When your financial stability is shattered through illness or injury, the only way to get a fresh financial start is to seek debt relief through federal bankruptcy protection. If you are unable to work, then filing under Chapter 7 for a liquidation bankruptcy is a good option because your exempt property will remain yours and your debts will be discharged. With Lawrence ‘D’ Pew, a Chapter 7 bankruptcy attorney, Phoenix, AZ, you will have the legal advocacy you need to eliminate your medical debts.
- Chapter 13. If you are able to work and can manage a payment plan over a three to five year period, then a Chapter 13 reorganization of your debts may be a better solution for you. Some, not all, of your debts are paid during implementation of your plan. When the plan is complete you will receive your discharge. Your Chapter 13 bankruptcy attorney, Phoenix, AZ, at the Pew Law Center has debt solutions for all of your financial problems.
Don’t Let Medical Debts Interfere with Medical Recovery!
The acute stress from financial worries may interfere with your medical recovery. Not only do you have expensive medical bills, you have the stress of managing illness, keeping your family fed and housed, all while relentless bill collectors make demands day in and day out. Getting rid of debt through bankruptcy will help you transition toward health and wellness.