Because of the financial strain Covid 19 has put on so many people, the Law Firm of William H. Lively, Jr. is lowering the up front costs for filing Chapter 13 bankruptcy cases for new clients. If you need to file a Chapter 13 bankruptcy and cannot come up with a large down payment to hire an attorney, contact our office–we can help get you protected for less.

Managing medical debt

People in Texas who do not have health insurance may want to look into it. Health insurance might be out of reach for some people, but those who can afford it but think they do not need it because they are healthy should consider that they could be injured or become suddenly ill. Medical debt can mount quickly and result in serious financial problems or even bankruptcy.

Some people put their medical expenses on a credit card, but this can be a mistake as well. Carrying long-term debt on a credit card can be expensive because the interest grows over time. If it is necessary to use the card, people with good credit may want to shop around for a zero percent interest card that offers a balance transfer. People who have already accumulated medical debt on a credit card should focus on strategies for paying it down. These strategies could include earning more money at a part-time job. Furthermore, since interest is calculated based on the average daily balance, it may help to make one payment earlier in the month and one later.

Some medical providers offer payment plans, and some of those are interest-free. People should be aware that these are different from zero-interest medical credit cards, which may apply interest retroactively after a certain period of time.

If a person does become overwhelmed with debt, bankruptcy may be an option. An attorney may be able to assist in this process. Some people might hesitate to file for bankruptcy because they think they will have to give up all assets. However, filing for Chapter 13 bankruptcy may allow a person to keep some assets, including a home. It may stop foreclosure and give the person an opportunity to work out a payment plan that is completed over three to five years.