In today’s economy, many families are finding it difficult to pay for medical treatment in Dallas/ Fort Worth Metroplex. This is especially true for those who have been laid off or terminated from employment. In other cases, a medical emergency may see the family falling deep into debt due to inadequate health insurance coverage. For that reason, we at Allmand Law Firm PLLC work with those families who are suffering from medical debt in order to devise the best possible way to address their financial situation and find a solution.
What is a Medical Bankruptcy?
When a family or individual is unable to pay their outstanding medical bills, their personal and financial life can be negatively impacted in a number of ways. Overdue medical bills can result in severe damage to the individual’s credit rating, which can reduce his or her borrowing ability in the future. In addition, a negative credit report may adversely impact the individual’s ability to obtain later employment.
Unpaid debts will usually be sent to a collection agency, which can lead to unwelcome phone calls and letters. This debt collection harassment can result in severe emotional and mental damage to the individual being targeted by the agency. In some cases, the collection agency may choose to sue the debtor, which can result in garnished wages and seized assets. We at Allmand law Firm PLLC can assist you in avoiding these problems by determining the best way to reduce your medical debt and restore your financial health.
Ways to Reduce Your Medical Debt
There are a number of ways to reduce your debt through a medical bankruptcy. At Allmand Law Firm PLLC, we have experienced bankruptcy attorneys who can assist you in choosing the course of action best suited to your particular situation.
The most common types of medical bankruptcy include:
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy will eliminate all of your medical debts. This is most useful for individuals facing overwhelming medical debt. If you reside in the Dallas-Fort Worth Metroplex, our bankruptcy attorneys will work with you to determine if filing a Chapter 7 bankruptcy is right for your individual case.
Chapter 13 Bankruptcy
Filing a Chapter 13 bankruptcy allows the debtor to work with the court in order to develop a plan of repayment suited to his or her financial situation. In many cases, a Chapter 13 bankruptcy can reduce the total amount of money owed to the individual’s creditors. This type of bankruptcy can help a family adjust their medical debt in order to effectively repay it.
Facing Medical Debt in Dallas, Texas? You Are Not Alone
It is important to note that the American Journal of Medicine has found that as of 2007, over 62% of all bankruptcies were due to medical debts. High insurance premiums, long-term care costs and other factors are likely to see medical costs continue to be a primary cause of involuntary bankruptcies for the foreseeable future. Even the changes to the nation’s healthcare systems are unlikely to reduce the financial danger facing families that are dealing with a medical emergency or long-term health issue.
At Allmand law Firm PLLC, we understand what you are going through. We can ensure that you emerge from a medical crisis financially prepared to face the future. Our Dallas bankruptcy attorneys can provide you with a free consultation that will evaluate your specific financial and medical situation, after which you will be offered those debt reduction and debt elimination options that are best suited for your specific situation.