In the midst of the healthcare debate among the nation’s governing body lies a bigger issue. The amount of medical debt families face is a real problem. Cancer, chronic illness or a major accident can all saddle families with unbearable medical debt. For many, those medical debt problems cause bankruptcy. Fortunately, the bankruptcy process can offer quick relief from daunting medical debt.
Medical Debt Problems Cause Bankruptcy
Imagine someone suffering from cancer or another chronic illness. Not only are they facing a battle for health, but the battle to make ends meet. High deductibles, monthly premiums and co-pays soak up a large portion of a person’s take home pay. Further, over 85% of people suffering from these types of illnesses lose their jobs or are forced to quit working. With no income to support themselves, many people face eviction or even foreclosure.
Filing for bankruptcy can put a stop to all of that. In bankruptcy, a person can eliminate their medical bills and other sources of debt. Medical debt is an easy debt to resolve in bankruptcy because it is an unsecured debt. In other words, it is a debt not tied to an asset. Since it is free from the risk of liquidation, it can be eliminated with ease. Many people pay a fraction, if anything, of the total amount of medical debt owed.
Also, bankruptcy can also put a stop to an eviction or foreclosure. When you file for bankruptcy an automatic stay is issued. This order prevents landlords or mortgage companies from action. You will be able to stay in your residence while you resolve your debt through the court. In most cases, you will be required to pay your mortgage or rent debt, but at a pace you can afford.
Bankruptcy offers a solution to financial problems and allows a person to get back on their feet. In many cases, a person can be debt free in a matter of months. Contact bankruptcy firms in Dayton OH to find out how you can get rid of medical bills once and for all.