How do unpaid medical bills affect bankruptcy?
How do unpaid medical bills affect bankruptcy?
Medical debt is a huge issue, and bankruptcy is not the only option for those who can't afford it. Medical providers can sue you if you fail to pay. These actions can result in a money judgment and other consequences, including wage garnishment and liens on your real estate. However, if you can pay off your debt, you might be able to avoid bankruptcy altogether. In addition, you may qualify for debt relief programs if your credit is good enough.
One way to fight back against medical debt is to build an emergency fund. Many people spend their entire savings account on medical bills, but the more money you put aside for emergencies, the better. Not only will this save you money in the long run, but it will also improve your financial security in the long run. Unpaid medical bills will have a negative impact on your credit rating, so it is essential to make sure that you have some money saved up.
Another option is to file for Chapter 13, also known as a wage earner's plan, which allows you to pay off medical debt in small installments over a longer period of time. In addition to being able to avoid the high upfront costs, a Chapter 13 bankruptcy plan may also help you maintain a good relationship with your healthcare provider.
If you have any questions or in need a Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
