Medical debt is one of the most-cited reasons for people to declare bankruptcy. Emergencies, injuries, or severe illness can leave an individual forced to cover large deductibles which quickly add up over time. This debt can be owed to several different entities and often results in frequent calls from collection agencies. Fortunately, the bankruptcy process can be used to stop the harassing calls and discharge the unpaid debt. Our Las Vegas bankruptcy lawyer assists southern Nevada residents who are struggling with unpaid medical bills. If you would like to schedule a consultation please contact us online or by telephone today.
Attorney helping Las Vegas residents discharge medical bills through Chapter 7 or Chapter 13 bankruptcy
Medical debt is dischargeable under the US bankruptcy code. Those filing under Chapter 7 will liquidate all of their non-exempt assets and the proceeds will be used to pay creditors, which includes medical providers. Those filing under Chapter 13 will enter into a repayment plan which typically lasts three to five years. At the end of either of these processes, any remaining medical debt will be fully discharged at the end. Other non-medical debts can be discharged as part of this same process.
Whether an individual may file Chapter 7 or Chapter 13 is determined through application of a “bankruptcy means” test. Those with higher levels of income are typically required to file Chapter 13 and are able to keep more of their assets as a result of the process. Those who file Chapter 7 may be required to liquidate their property. It is important to understand, however, that under either of these chapters an individual may claim a number of exemptions. This means that they will be permitted to keep property and belongings and not have it count against the calculation of their bankruptcy. These exemptions include provisions up to a certain amount for homes, cars, jewelry, and more. The proper use of exemptions means that an individual can emerge with bankruptcy without giving up any of their belongings.
The process will begin by filing a Petition with the Bankruptcy Court. A “stay” will be put in place automatically which stops all action being taken by debt collectors – including phone calls. If an individual is filing under Chapter 7 then the process will usually take ninety days and will be overseen by a Trustee. All medical debt will be eliminated at the end of this process. If the individual is filing under Chapter 13 they will submit a plan proposing payments for a period of three to five years. All eligible remaining debt will be eliminated at the end of the repayment period. While the foregoing may sound simple, any errors in the handling of a case can result in the Petition being dismissed or a discharge being denied. Having an experienced attorney helps to ensure that your case is handled properly.
Nikki Dupree-O’Brien is a bankruptcy lawyer helping Las Vegas residents to discharge medical debt under Chapter 7 or Chapter 13. Nikki will use your initial consultation to gain a handle of your situation. We will quickly file your Petition with the Court so harassing calls from bill collectors can stop as soon as possible. Our firm will represent you throughout the process and will make sure you understand what the next steps are as the matter proceeds. We will also be meticulous in maximizing your exemptions so that you do not give up more of your property than is required. We understand that declaring bankruptcy is an important decision and we are here to assist you. Contact us today to get started.
Bankruptcy attorney helping Las Vegas residents discharge debts other than medical bills
Those who are struggling with medical debt often have other financial issues weighing them down. Bankruptcy can deal with these issues as well. This includes eliminating credit card debt, discharging income tax debt, and stopping a wage garnishment. Nikki understands that unforeseen events happen in a person’s life and we are here to help get things back on track. We are honored to serve the residents of Las Vegas and we provide a high level of service in each and every case we handle.