Chapter 7: Protection From Bankruptcy Medical Bills


Medical bills are the most common reason for people filing for bankruptcy. However, it is possible to get protection against bankruptcy medical bills, as hospital bills are considered unsecured debt. A Chapter 7 bankruptcy is perfect in the sense that it is the fastest and the debtor can get away with just a few nicks and cuts, especially some properties that are not covered by the exemption. and your overall credit score, which can impact your ability to secure loans in the future.

Bankruptcy medical bills might be the best thing you can do to jumpstart your financial future with a blank slate. There is a certain stigma involved in declaring bankruptcy, but it is actually a very personal matter. Your privacy is protected and you can always move on with your life, as opposed to the misconception that you only leave with your clothes on. In some cases, you can even keep your car in bankruptcy.

What happens is that the court appoints a trustee who will take inventory of your properties, determine which ones are exempt and sell those which are not. The money raised from the sale will be used to pay your creditors. To find out which properties are exempt from Chapter 7 bankruptcy, talk to an attorney knowledgeable with bankruptcy laws. Here are some examples of properties covered by exemptions: your home, the tools or equipment you use in your profession, social security, disability or unemployment benefits, or insurance. life. There could be additional exemptions depending on state laws.

After declaring bankruptcy, the court orders creditors to stay away. But the law also allows creditors to prove that they are justified in collecting your debt, the burden of proof however swings on their side. Bankruptcy won't wipe out all of your debt, however. Any lien you owe prior to the medical emergency will remain on file and you are required to settle it in a timely manner.

Filing bankruptcy medical bills will not automatically exempt you from paying the IRS. There are conditions before the federal tax agency lets you off the hook. Again, consult with a bankruptcy attorney to explain all the gradations of the law when it comes to Chapter 7 bankruptcy medical bills. You may be able to ward off your creditors, but you can't get away from it. IRS. Federal agents can still step in even after bankruptcy and seize your properties, but only if they decide you are trying to evade your liability as a taxpayer.

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