Medical Debt In Bankruptcy
Many people are facing growing medical debt burdens and the risk of losing their homes or property as a result. While some people may seek debt relief through a settlement or consolidation loan, filing for bankruptcy may be more beneficial. There are several reasons bankruptcy may be the best choice for medical debt relief.
Bankruptcy can eliminate most unsecured debts, including credit card debt, medical debt, and personal loans. It also eliminates most types of tax debt, including federal income taxes, state income taxes, and unpaid property taxes. Bankruptcy may allow debtors to keep their homes and vehicles, and it can help people who have incurred large amounts of debt to pay off that debt and move forward with their lives.
If you have medical debt, you may have to pay off debts with higher interest rates before you can pay off your medical debt. And if you have a high interest rate on your credit card, you may be tempted to use the card to pay off some of your medical debt. If you can’t make payments on more credit card debt, you may end up in a cycle that you can’t escape. This can be especially true if you have unpaid medical debt. Medical debt can also be more difficult to work with than other types of debt.
Bankruptcy may be the best option for debt relief if a debtor has a lot of medical debt to pay. Working with a qualified Sacramento bankruptcy lawyer can stop harassing medical debt collection calls, and develop a plan to get you out of debt and back on track.