San Fernando Valley Medical Dept Attorney

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 chapter 7 bankruptcy. Know that you are not alone and with the help of one of the top San Fernando Valley bankruptcy financial lawyers in the area, we may be able to help you manage medical debts.

Secured, Unsecured, Priority, and Non-priority General Unsecured Debts

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. You may be wondering how your medical bills are being treated under Chapter 7 bankruptcy and SM Law Group may be able to guide you in your next steps

How Are My Medical Bills Treated During Bankruptcy?

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

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