Medical Debt Relief
Medical Debt Relief in Eugene, OR
In this economy, medical debt sends more people into bankruptcy than any other type of debt. This isn’t how it’s supposed to work, but legislative measures have failed to address the high costs of health care in this country as partisans on both side blame policy for the exorbitant costs to American citizens. Of course, this does little to help uninsured Americans deal with thousand-dollar bills for emergency room visits or bills for tens of thousands of dollars when they suffer a medical event that they didn’t expect. Meanwhile, there are still too few of us who are adequately insured and we sometimes have very high deductibles.
If you owe thousands of dollars in medical debt that you can’t afford to pay, you do have options. Tom Butcher helps folks who are dealing with serious debt problems resolve those issues in the best possible way. Below, we’ll talk about how you can manage medical debt
Medical Debt Settlement
If the debt is older and you’re bringing in a decent income, one option you may want to look at is debt settlement. Once the debt has gone into default, the hospital or doctor to whom you owe the debt can send it out for collection. They will either give the debt to a collections agency or a debt collections attorney who will then file a lawsuit against you and attempt to get a judgment. If they are successful, they can then go about levying your bank account, garnishing your wages, or placing a lien on your real estate. None of these are good and will only cause your financial struggles to increase.
Instead of waiting for that to happen, you can talk to a Lane County medical debt relief attorney who will go over your options with you. In many cases, the mere threat of bankruptcy can force the creditor into the position of settling the debt for significantly less than you owe. This is because a bankruptcy will likely discharge the entire debt amount unpaid. However, you will need the means to make one lump-sum payment. If you can’t do that, you still have options.
Medical Debt and Chapter 7
As soon as you file for any kind of bankruptcy, all creditor actions against you must immediately stop. If the creditor has filed a lawsuit against you, it will be dismissed. If the creditor is garnishing your wages or has levied your bank account, you may be able to get that money back. The sooner you act, the better your result will be.
If you’re eligible to file under Chapter 7, you will list the medical debt as part of your bankruptcy. After your bankruptcy case has been closed, you simply won’t owe the money anymore.
Medical Debt and Chapter 13
If you owe medical debt and are behind on your car or mortgage payments, it may be advantageous to file under Chapter 13. You can discharge medical debt in Chapter 7 to free up your finances to make your car and mortgage payments, but you will have to reaffirm the debt. Chapter 13 allows you to roll all your debts into one monthly payment that is executed over the course of three or five years. While you will likely have to pay off some of your medical debt, you may not have to pay off the entire amount.
Call a Eugene, OR Medical Debt Relief Attorney Today
If you’re concerned about how you’re going to make your next car payment, pay your rent or mortgage, or you’re coming up short for your monthly expenses because of medical debt that just won’t go away, then call Tom today at Butcher Law Office, LLC. We offer free hour-long face-to-face consultations on how to manage your unique debt situation.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship.