Long Islanders who find themselves deep in debt are not necessarily in that position because of job loss or due to spending beyond their means. One of the most common reasons for filing for bankruptcy to have a financial fresh start is through medical debt. Medical expenses can arise for a multitude of reasons and those who are dealing with it must be aware that they have options to move on with their lives.
People can accrue medical debt through an unexpected illness, an injury, a sick child or by simply losing a job and losing health insurance that they previously had. Out of pocket costs can lead to massive medical bills in short order. One of the biggest moneymakers for collection companies is pursuing people who have vast amounts of medical bills that they have not paid and likely cannot pay. While filing for bankruptcy or seeking another method to overcome these financial challenges is often perceived as a negative, it is a sound strategy to get back on stronger financial ground and get a fresh start.
Those who have medical debts they cannot pay can use Chapter 7 or Chapter 13 bankruptcy similarly to getting a discharge of unsecured debt. Medical bills stem from services meaning they can be discharged. Creditors and debt collectors will try a variety of means to get a debtor to pay and the debtor might not realize that he or she can consider bankruptcy to end the harassment, judgments and attempts at wage garnishment.
For people who have medical debt and do not see a way out, there are many choices to move forward including filing for bankruptcy and having debt negotiators assist with dealing with the creditors and debt collectors. Contacting a legal professional with experience in helping clients who are confronted with overwhelming medical debt is a smart decision to move forward.