Whether for planned care, or unexpected illnesses or injuries, medical expenses can add up quickly in Tennessee, and elsewhere. Often, you may find yourself unable to keep up with these bills. We are often asked about debts resulting from medical bills at Rothschild & Ausbrooks, PLLC. As such, we will discuss how these expenses may become overwhelming, and what you can do to regain control of your finances in this post.
Even with health insurance, you may be financially responsible for certain medical expenses. This may include co-payments, co-insurance, deductibles and other out-of-pocket expenses. While these bills add up, you may be off of work recovering, so your income may be reduced. Like other debts, your medical bills may be sent to collections if you do not pay them and do not make payment arrangements. These debts may be reported to the credit reporting agencies, and thus, impact your credit score. According to the Consumer Financial Protection Bureau, the credit reports of close to one-fifth of all people in the credit reporting system include medical debt collections.
When faced with mounting medical bills, there are steps you can take to regain control of your finances. Often, doctor’s offices and health care facilities are willing to work with you, and allow you to make payment arrangements. In other cases, you may choose to declare bankruptcy. If you choose to file for Chapter 7 bankruptcy, then your medical debts may be discharged, along with your other unsecured debts. Should you choose to file for Chapter 13 bankruptcy, then your medical debts will generally be added to your other unsecured debts and addressed through your repayment plan.
For more information about debt relief options for medical bills, please visit our medical debt page.