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The Process of Adding Medical Bills After Filing Bankruptcy

The Process of Adding Medical Bills After Filing Bankruptcy
"""Sometimes, after declaring bankruptcy, a debtor is injured and incurs medical expenses. Can these debts be included in their bankruptcy filing?

This is a valid query, and the answer depends on the type of bankruptcy that is filed. Chapter 7 and Chapter 13 are the two most common forms of bankruptcy. Chapter 7 bankruptcy is typically the most expedient and simple form of bankruptcy. A Chapter 13, also known as the wage earners plan, allows a debtor with a steady income to establish a repayment plan to eliminate all or a portion of their debts within three to five years.

If the debtor received medical care before filing for Chapter 7 bankruptcy, those debts are considered to be part of the bankruptcy process. In such a circumstance, they would be released. Alternatively, if the medical care was rendered after the filing of Chapter 7 bankruptcy, the debt is not included in the proceeding. This means the delinquent would be responsible for paying the bill alone.

No one can predict when they will be injured and require hospitalization or ongoing medical care. Everyone experiences unanticipated expenses from time to time. This indicates you must proceed with caution when filing. You must wait eight years after filing Chapter 7 before filing another Chapter 7 bankruptcy. Medical creditors have the option to file a lawsuit against you if you are unable or unwilling to pay them. If successful, they may be able to repossess your property, attach liens, garnish your wages, or seize your assets.

Your disposable income is utilized to make monthly payments in accordance with the court-approved repayment plan in a Chapter 13 bankruptcy. In other words, because it is an ongoing plan, you can modify the schedule to include medical debts as time passes. They are prioritized and added to the payment order. Medical invoices and other unsecured debts may be discharged.

Although it is possible to include medical debt repayment in a Chapter 13 bankruptcy, there are additional repercussions. The most significant is the additional cost you'll incur to meet your debt repayment schedule. If you cannot pay or neglect payments, the plan could be terminated. This would return you to your original starting point.

In either case, there are exceptions to consider, and it would be prudent to consult with a qualified Iowa bankruptcy attorney to determine what options are available in your particular case.""

" - https://www.affordablecebu.com/

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"The Process of Adding Medical Bills After Filing Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 121 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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