The Trouble with Medical Debt
If you are like most Americans, you probably have some medical debt. Even with insurance, many people may still pay excessive amounts for health care. With the rising cost of living, these medical bills often end up taking a back seat to more important bills. However, once the calls that begin with “this call is from a debt collector” start coming, it can be hard to recover. You can put an end to these calls and discharge medical bills with bankruptcy.
Bills with the Hospital
Even if the calls have already started, you can still file bankruptcy on your medical debt. The most important thing is knowing who you owe and how much you owe to the health care provider. From there, bankruptcy can take care of the rest.
Medical Bills in Collections
You may find comfort in knowing you are not the only one with medical bills that have gone to a collection agency. In 2020, collection agencies held $140 billion in unpaid medical bills. Hoosier Account Services, G.L.A. Collections, Receivables Management Partners, and Med-1 Solutions are a few of the many agencies collecting for past due medical debt. If you have put some of your medical bills aside, you may be familiar with some of these companies. Unfortunately, if you have reached this point, the collection agencies are already reporting negatively to your credit report. You can voluntarily pay on the medical debt to stop this, but that is not always doable on a tight budget.
Lawsuits from Medical Bills
If you’re unable to pay your medical debt voluntarily, you could be sued. Sadly, these kinds of lawsuits are simple for collection agency law firms and hundreds are filed in a single day. These lawsuits can result in creditors garnishing your wages, seizing money in your bank account, and even foreclosing on your home.
How Bankruptcy Can Help
While many people believe bankruptcy is for those who have overspent, research has shown medical debt is one of the top 3 reasons people file. Fortunately, bankruptcy discharges medical bills, which means you would no longer be liable for this debt. Because this debt can be detrimental to your credit and a healthy financial life, it is important to get help now.