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Using Chapter 7 to handle medical debt

Of all the debt that can be accrued by Americans, medical debt can be the most crippling. While it is still considered unsecured debt, the amount of an individual's medical expenses can quickly outstrip his or her ability to pay for it, especially in the event of a prolonged recovery period or deteriorating condition. This is why, for some Kentucky residents, a Chapter 7 bankruptcy filing might be the best way to shield the family from the financial repercussions of a long illness or severe injury.

Of course, few people expect to accrue medical debt in their lifetimes, but the truth is it is much more common than some people believe. Depending on one's state of residence and health care plan, it is common for only a fraction of the costs associated with recovery or support to be covered. In these cases, many people find themselves paying out-of-pocket for support and racking up credit card and personal loan debt at an alarming rate.

Bankruptcy should not necessarily be the first option considered, however. Other options are available, including reaching out to the medical provider directly to determine the viability of a settlement. It is also sometimes possible to set up a payment plan, and in some states, financial assistance packages exist for those who are ill or injured. In the most difficult cases, however, bankruptcy might be the best option.

The best person to consult to determine whether Chapter 7 bankruptcy is right for one's situation is an experienced bankruptcy attorney. There are many options for support here in Kentucky, and the help of an attorney can make a huge difference for families who feel they have nowhere to turn. Filing for bankruptcy can help to minimize the heavy debt load that comes with an illness or injury, which can, in turn, help to return the family to financial stability when the hospital visits end.

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Law Office of Ginger C. Cord, PSC
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Lexington, KY 40507

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