Chapter 7 bankruptcy can provide significant relief for individuals burdened by overwhelming medical debt. Medical expenses are a common cause of financial issues and filing for Chapter 7 bankruptcy in North Carolina offers a potential solution for those struggling to manage medical bills.
However, knowing how bankruptcy can help with medical debt is important if you want to take advantage of this filing. Learn more here.
An automatic stay stops creditor harassment
An automatic stay goes into effect once you file the Chapter 7 bankruptcy petition. This provision stops all collection efforts. This includes harassing calls from creditors and medical providers. It provides immediate relief from the stress and pressure of medical debt.
The discharge of medical debt may be complete
Chapter 7 bankruptcy allows for the discharge of qualifying unsecured debts, which includes medical bills. Once the bankruptcy process is complete, eligible medical debts can be eliminated. This gives you a fresh start if you are dealing with extensive medical expenses.
There’s no long-term repayment plan
If you file Chapter 13 bankruptcy, a payment plan is established. However, Chapter 7 bankruptcy does not require you to repay your debts over time. Medical debt can be fully discharged without needing a repayment schedule. This provides you with a quicker resolution.
Asset protection is still possible
You can use bankruptcy exemptions to protect certain assets from liquidation. Examples include your primary residence, personal property and retirement accounts. If you file for Chapter 7 bankruptcy, you may be able to retain these assets while eliminating medical debt.
You can stop wage garnishment
If medical debt has led to wage garnishment, Chapter 7 bankruptcy can stop it. The automatic stay prevents creditors from garnishing wages. This means you have a chance to regain control of your finances and work towards a debt-free future.
If you are considering filing Chapter 7 bankruptcy to alleviate medical debt, it is important to know all the stipulations. This will help you make the right decision for your financial situation. Experienced