How Does Medical Bankruptcy Work in Pennsylvania?

Medical debt can seem ever-growing, and debtors may have difficulty meeting payments while getting medical treatment. To erase your medical debt and move forward with your life, you can file for bankruptcy in Pennsylvania.

If you have overwhelming medical debt in Pennsylvania, you can file for bankruptcy to eliminate it. Our attorneys can help debtors file for either Chapter 7 or Chapter 13 bankruptcy, depending on their income and preferences. The former works through liquidation, while the latter works via a repayment plan. Whichever path you choose, you can discharge your medical debt within a few months or years by filing for bankruptcy in Pennsylvania. While pursuing bankruptcy can feel daunting, it can be the answer to overwhelming medical debt that you need to disappear.

We’re here to help debtors wipe the slate clean and regain financial stability. For a free case evaluation with the Philadelphia bankruptcy lawyers at Young, Marr, Mallis & Deane, call today at (215) 701-6519.

Can You File for Medical Bankruptcy in Pennsylvania?

Health care can be expensive, and people with or without insurance may have difficulty handling medical costs in Pennsylvania. The more treatments you require, the worse your debt may become. Those in serious medical debt may be unable to work because of their conditions or be unable to pay off creditors because of other debts. If medical debt has impacted your financial stability, consider filing for bankruptcy in Pennsylvania.

“Medical bankruptcy” is an unofficial term, not a specific type of bankruptcy. However, you can use bankruptcy as a tool to eliminate your medical debt. Hospitals can be creditors, like everyone else. While this might contrast with how you view hospitals as a place for comfort and care, it is the case. If you owe a hospital money, it will want you to pay.

So, medical debt is like many other types of dept. It is considered an unsecured debt and is easily dischargeable when you file for bankruptcy in Pennsylvania. Our Reading, PA bankruptcy lawyers can explain the benefits of erasing your medical debt and how to best do so.

Which Type of Bankruptcy Should You File for to Eliminate Medical Debt in Pennsylvania?

Depending on your income, your family’s finances, and the amount of medical debt you currently have, different types of bankruptcy might better suit your circumstances. Our Pennsylvania bankruptcy lawyers can assess your situation to determine whether or not you should file for Chapter 7 or Chapter 13 bankruptcy to eliminate your medical debt.

Chapter 7

In order to be eligible to file for Chapter 7 bankruptcy in Pennsylvania, you must pass the means test. To qualify for Chapter 7, you can’t make over the average monthly income for your area. That’s because Chapter 7 works fast by liquating a debtor’s assets and paying off all debts within several months.

If you need immediate relief from medical debt and pass the means test, filing for Chapter 7 bankruptcy might be ideal. However, if you have a family and assets that you can’t risk liquidating, Chapter 7 might not be right for you. To learn more about the ins and outs of Chapter 7 bankruptcy and how it can help you eliminate your medical debt, speak to our Pennsylvania bankruptcy lawyers.

Chapter 13

If you have medical debt, you can eliminate it by filing for Chapter 13 bankruptcy in Pennsylvania. After you file, our Springfield, PA bankruptcy lawyers will devise a repayment plan. Once approved by the court, a repayment plan will go into effect. Your regular payments to medical creditors will be based on your disposable monthly income. With Chapter 13 bankruptcy, liquidation of assets is not necessary. Filing for Chapter 13 bankruptcy can be ideal for debtors with dependents that can’t risk losing their assets through liquidation.

Generally, Chapter 13 bankruptcies can take about three to five years to complete. After that time, you can be entirely free from medical debt in Pennsylvania.

Why Should You File for Bankruptcy in Pennsylvania if You Have Medical Debt?

Medical debt can feel all-consuming, and people shouldn’t have to choose between their physical and financial health. That said, our attorneys understand that filing for bankruptcy is a big decision. Instead of viewing bankruptcy as a sign that your finances are unstable, see it as a vehicle to regain financial stability and eliminate medical debt.

Automatic Stays

Filing for bankruptcy when you have overwhelming medical debt can be wise. Immediately after you file, an automatic stay will go into effect. This is the case whether you file for Chapter 7 or Chapter 13 bankruptcy in Pennsylvania. This automatic stay prevents hospitals from contacting you regarding payments. An automatic stay can provide the immediate relief debtors need to take a deep breath and move forward with bankruptcy.

Avoiding Lawsuits

Creditors, including hospitals, might file a lawsuit against a debtor to get payment. This is never ideal, as a creditor lawsuit might put your home and bank accounts at risk. When you file for bankruptcy, you can eliminate all your debts and the chances that creditors will sue you for repayment. Whether you file for Chapter 7 or Chapter 13 bankruptcy, your medical debt can be repaid by the time bankruptcy ends, allowing you to avoid unnecessary lawsuits from medical creditors.

Regaining Stability

As medical debt grows, it can feel suffocating and overwhelming to anyone, especially those in need of further medical treatment. Hiring our Pennsylvania bankruptcy lawyers and filing for bankruptcy can allow you to hit the reset button, regain financial stability, and focus on your health.

Call Our Pennsylvania Lawyers About Your Bankruptcy Case Today

If you’re feeling overwhelmed by medical debt, our attorneys can help. For a free case evaluation with the Levittown bankruptcy lawyers at Young, Marr, Mallis & Deane, call today at (215) 701-6519.