Medical Debt Attorney

Solutions for Complex Issues

Health care is one of the major issues in the United States. Millions of U.S. residents are facing difficulties paying medical bills, especially after something unexpected occurs such as a car accident or heart attack. Uninsured or poorly insured Americans may lead these individuals into filing for Chapter 7 bankruptcy. Know that you are not alone and with the help of our Los Angeles medical debt attorneys at SM Law Group, APC, we may be able to help you manage medical debts.

How to Get Medical Debt Relief

There are many ways you can get around your medical bills, especially if you do not have the income or savings to pay them right now. One of the options available is to file for bankruptcy. Contrary to popular belief, filing for bankruptcy is not only designed to pay off credit card or business debts. It can also provide relief for medical debt, especially when the amount has reached an unmanageable level.

There is no special type of bankruptcy that you must file if you have problems with medical debt. It is simply a matter of deciding whether chapter 7 or chapter 13 bankruptcy makes more sense in your case. Our attorneys can take a look at your finances, bills, and debts to help you decide the right choice, and come up with a plan.

Understanding Debt Categories

There are four categories of debts.

• Secured debts are debts that have a lien on property and can be foreclosed or repossessed. The debt is secured by the property you own, which becomes collateral. Examples include car loans and mortgages. Medical debts are not secured debts.
• Unsecured debts are debts that do not have property securing them. These debts are separated into two other types of debts: priority and non-priority general unsecured.
• Priority debts are debts that cannot be dissolved by bankruptcy. This type is paid off first before any other debt under Chapter 7 bankruptcy. Child support and specific kinds of taxes live up to the term of “priority debt.” Medical debts are luckily not part of this category.
• The final category is non-priority general unsecured debts. These types of debts are the last to be paid off by the Chapter 7 bankruptcy. Besides some types of student loans, the majority of non-priority general unsecured debts are let go without paying in bankruptcy. Medical debts are considered to be non-priority general unsecured debts, as well as credit card debts.

How Are My Medical Bills Treated During Bankruptcy?

Medical bills are in the non-priority general unsecured debts category. Medical debts will not earn top priority if creditors are able to receive payments from a trustee. Part of your medical debts may be covered by the filed bankruptcy; however, the rest will be gone after the discharge. The best way to help you in this seemingly tough situation is may be to file for Chapter 7 bankruptcy.

Medical Bill Forgiveness

If you have a disability that prevents you from working, you may be eligible to have your medical bills forgiven by petitioning the medical provider. Our attorneys can help you provide proof in the form of gathering written documentation and tax returns to show that you don’t have the means to pay off your bills.

If you are drowning in medical debts and need to know what your options are, contact SM Law Group, APC today. The consultation is free and is only a phone call away.