Medical bills are often unexpected. Most people don’t have cash on hand to cover thousands of dollars in bills all at once. Even for those who have good insurance, the co-pays and deductibles can be very costly.
There are a few ways to handle these types of medical bills. Some people might have some disposable income that they can use to make payments, but others might not have that available. Without the ability to pay, some people may turn to crowdfunding to pay what they owe; however, this isn’t always successful.
What happens if crowdfunding doesn’t work?
A debtor may assume that they have very few options if they’re unable to generate enough money by crowdfunding and cannot free up money in the budget to make medical bill payments. Some consumers might simply ignore the bills and collection attempts, but you’ll have to do this for a long time. Another option is to file for bankruptcy.
By filing for bankruptcy, you’re taking control of your finances. One of the first things you’ll have to determine is which form of bankruptcy you should file. Consumers usually file for either Chapter 7, a liquidation bankruptcy, or Chapter 13, which involves a repayment plan.
One positive point about filing for bankruptcy is that the court issues an automatic stay. Creditors won’t be able to contact you about the debts once you file your case, so this provides you with relief from the collection attempts that are likely making your life miserable right now. Your attorney can help you learn more about this, as well as the different forms of bankruptcy.