Bankruptcy Can Be A Solution To Overwhelming Medical Debt In Tyler And Throughout East Texas
A medical emergency is almost always unexpected and something that is very difficult to financially plan for. Even if you have health insurance, a devastating diagnosis or even an out-of-network ambulance ride can result in tens of thousands of dollars in debt. It’s little wonder that medical debt is one of the leading causes of bankruptcy filings in the United States.
This is something we see all the time at the law firm of William H. Lively, Jr. WHL, PLLC. Almost every bankruptcy case we handle involves some amount of medical debt. This is an unfortunate reality, as people are not only coping with a medical issue or its aftermath but also with an overwhelming debt problem. The reassuring news is that there is a solution for East Texans in this situation. When you contact our firm, we can discuss whether bankruptcy would be an appropriate remedy to help you find relief.
For a free consultation, please call us in Tyler at 903-920-0008 or complete our contact form. We are the premier bankruptcy law firm serving all of East Texas.
Can Medical Debt Affect Your Credit In Texas?
Unpaid medical bills can significantly impact your credit score in Texas. When your medical bills go unpaid, health care providers may turn your debt over to a collection agency. At this point, the agency can choose to report your debt to credit bureaus, which would then appear on your credit report. This can lower your credit score, making it harder to get loans, credit cards or even rent an apartment. It’s important to address medical debt as soon as possible to avoid these negative effects.
How Long Does It Take Before A Medical Bill Is Uncollectible In Texas?
A statute of limitations is the time limit that a party has to sue another in civil court. In Texas, the statute of limitations for collecting unpaid medical debt is four years. This means that your creditors have four years from the date of your last payment to file a lawsuit to recover the balance, interest and other damages. After this period, the debt becomes time-barred, and they can no longer legally sue you to collect it. Keep in mind that the fact that a lawsuit is no longer possible does not mean you no longer owe the debt or that it cannot continue to affect your credit rating.
Medical Debt Can Typically Be Discharged In Bankruptcy
The two most common types of consumer bankruptcy are Chapter 13, which focuses on reorganizing and repaying debt, and Chapter 7, which focuses on discharging (legally forgiving) debts. Not all types of debt are dischargeable. However, medical bills are considered “unsecured debt” (not backed by collateral), and they typically can be discharged.
If you qualify for Chapter 7 bankruptcy (based on income and other factors), our firm can help you wipe out medical debt and other unsecured debts permanently in a matter of months. Even if you don’t qualify for Chapter 7, we can help you reorganize medical debt into a manageable repayment plan in Chapter 13 bankruptcy.
By filing for bankruptcy, we can also help you immediately stop creditor harassment and pause foreclosure and other collection-related activities.
Can You Get Your Medical Debt Forgiven?
Medical debt is a kind of “unsecured debt,” which can be discharged in personal bankruptcy. If you have heavy medical debt, you can likely get the debt forgiven if you qualify for Chapter 7 bankruptcy, or you may be able to get your medical debt reorganized into a workable repayment plan if your case is more suited to Chapter 13 bankruptcy. We can assess your situation and explain your full range of options.
Is Medical Debt A Common Type Of Debt In Bankruptcy?
Yes. Medical debt is the most common type of debt that people need to discharge through bankruptcy. If medical bills are a factor in your debt situation, you are not alone. It isn’t fair, but medical debt is very common. We are here to help you discharge or reorganize your medical debt through bankruptcy.
Do You Need A Bankruptcy Attorney For Medical Debt?
The bankruptcy process is complex and overwhelming for most people unless they are bankruptcy lawyers. The best and most efficient path toward getting your medical debt forgiven is to discuss your case with us today. We are known for taking great care of our clients. We are a local law firm in Tyler, serving clients throughout East Texas.
Get Started On The Road To Financial Recovery With A Free Consultation
You don’t have to keep enduring the stress that comes with heavy medical expenses. Let us help you get the bankruptcy relief you need for a fresh start. The law firm of William H. Lively, Jr. WHL, PLLC, is one of the leading bankruptcy firms in East Texas. To schedule your free consultation about bankruptcy options, call our office in Tyler at 903-920-0008 or complete our contact form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.