Choosing Bankruptcy For Uninsured Cancer Medical Bills: Which Type Is Best?
Posted on: 14 November 2018
As people age, health problems such as cancer impact their lives in various ways. Unfortunately, uninsured cancer medical bills can make life very difficult for a large number of people. In this situation, bankruptcy might be the only possible choice for many. Knowing which type of bankruptcy to choose is critical for your financial and health future.
Cancer Medical Bills Are Often Astronomical
A person going through cancer treatment may end up having to pay as much as $100,000 per year for their treatment. For example, they will visit a doctor many times, receive expensive care to diagnose the tumor, treatments to get rid of the tumor, and medications to improve their quality of life.
People without insurance are particularly devastated here, because they'll have to pay for everything out of their own pocket. And even if they did have insurance, there is a chance that their policy might not cover certain cancer-related expenses, such as anti-cancer drugs. Therefore, it is critical to know what type of bankruptcy works best for your medical debt and which you should seriously consider filing.
Which Bankruptcy Type To Choose
The two most common types of bankruptcy are chapter 7 and chapter 13. Choosing which type to file is important when discharging medical debt. Currently, there is no minimum debt for filing either type of bankruptcy. However, chapter 13 has a maximum secured debt limit of over $1,000,000 and a maximum unsecured debt limit of just under $400,000.
Thankfully, most people with medical debt shouldn't have levels higher than that. However, costly medical procedures may put you over the limit and require chapter 7 bankruptcy. Currently, there is no maximum debt limit on this type of bankruptcy. However, your income must be below a certain level, which will depend on your medical debt and the amount of money you make.
The minimum level can also vary depending on how your medical condition affects your ability to earn. A bankruptcy specialist will sit down with you when you apply to calculate how much your disease affects your ability to make money. For example, a person recovering from cancer treatment may be unable to work for months or even years while their body fully heals. In this scenario, bankruptcy can help them remain financially solvent during a tough recovery period.
Therefore, you should seriously consider talking to a high-quality bankruptcy attorney to learn more about how you can discharge your medical debt successfully. In this way, you can not only successfully beat cancer but avoid devastating financial consequences during treatment.
For more information, contact a lawyer from a firm like O'Connor Mikita & Davidson LLC.
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