Medical Bills and Bankruptcy

Southeast Alabama Attorneys helping discharge medical bills for clients in Dothan, Ozark, Enterprise, Eufaula, Troy, Montgomery, and all of Alabama

Unfortunately in this country, one of the leading causes of bankruptcy are unpaid medical bills, The costs of medical care is skyrocketing, especially for uninsured patients, and this is ruining credit scores and depleting savings every day for thousands of patients. Thankfully, medical bills fall in the dischargeable category of debts in bankruptcy, and a successful Chapter 7 filing can give the needed relief to hard-working individuals who struggle to stay financially afloat in the face of mounting medical bills, many of which have been incurred through no fault of their own.

Upon the filing of a petition for bankruptcy, the automatic stay kicks in to prevent any action to recover payment on a debt, including those by health care providers to recover medical bills. Such prohibited collection actions include anything from threatening or instituting lawsuits, to calling or sending letters in regard to an outstanding balance. Plus, after liquidation and distribution in a Chapter 7 proceeding, the medical debts are discharged and cease to legally exist. In a Chapter 13 filing, the debtor and creditors negotiate a repayment plan for the debtor to follow, subject to court authorization.  Such plans can extend for a period of up to five years, after which any remaining balances are similarly discharged.

If your medical bills are becoming unmanageable, and a source of seemingly unending harassment by bill collection agencies, then bankruptcy might be your most viable option. Dothan bankruptcy lawyers Parkman White, LLP can help you evaluate your options and decide the best course of obtaining debt relief for your unique situation. Email us or call our bankruptcy attorneys today at 334-792-1900 for a consultation, and see what our experts can do for you.