Despite major healthcare legislation reforms, medical debts and expensive medical bills are the leading cause of bankruptcy filings in the United States. In fact, numerous studies have shown that over 60 percent of personal filings come as a result of unmanageable medical bills. The worst part is that these medical bills are often unexpected. Unlike poor money management, medical bills come at a time when you or a loved one is ill or suffering from an injury. Fortunately, a Cincinnati bankruptcy attorney can help you turn this situation around.
Cincinnati Bankruptcy Lawyers Help Where Insurance Can’t
Medical insurance isn’t a safeguard against a medical bankruptcy. High deductibles and various loopholes can still result in mountains of debt for you and your family. Insurance against a health crisis isn’t insurance against a financial crisis. An attorney can help you determine whether Chapter 7 or Chapter 13 is the best method to eliminate your medical debt.
Filing for a Chapter 7 personal bankruptcy may liquidate your non-exempt assets. The funds are then used to pay off your unsecured debts. However, a Chapter 13 reorganizes your debt over the next 3-5 years for you to manageably repay with reduced rates. A Cincinnati bankruptcy attorney will help you determine financial priorities to ensure that the most important bills are paid first. While there are other alternatives to bankruptcy such as negotiating with debt collectors and hospitals, bankruptcy is oftentimes the best option for a fresh financial start.