In this article, you can discover…
The simple answer is that you can discharge medical debts in the state of Illinois, but there are some exceptions to the rule. These exceptions are fairly rare, only occurring in cases where you may have lied to a doctor about your ability to cover your care.
For instance, a doctor may prescribe a treatment, thinking that you can afford it because you have misrepresented your funds. In this case, that medical debt would likely not be discharged as it was incurred due to a lie or misrepresentation on your part.
The process of discharging debts through bankruptcy is not much different than any other bankruptcy case. You do not need to use an attorney, but there are a number of rules and laws involved with the process that an attorney can help with greatly. Your first step should be to meet with an attorney and discuss your options for bankruptcy.
After determining what option is best for you, you will need to gather the proper documents, including credit reports, billing statements, and bills from doctors and hospitals. The amount of these bills and their associated procedures are not relevant, but they play a key role in properly reporting your assets and liabilities.
You will also need to report on your income, outstanding debts, and monthly expenses. Through this process, you can ensure that you are filing properly and are protected under the bankruptcy code.
There are some basic differences between the two chapters when it comes to medical debt. For instance, Chapter 7 bankruptcy will wipe your slate clean within four to six months. The process can take longer if assets need to be sold off by a trustee and distributed among creditors.
However, a Chapter 13 bankruptcy would involve a monthly payment that is applied to all of your debts. Some of your debts will need to be paid in full, but others may only require a percentage depending on statutes and other factors.
The required monthly payment amount can differ based on your financial circumstances and the complexity of your case. Ultimately, the timelines may be slightly different, but the end goal is largely the same in Chapter 7 and Chapter 13 bankruptcy.
Attorney Penny Bach is a seasoned lawyer based in Cook County, Illinois, who has helped countless clients just like you navigate the intricacies of medical debt deliberations. With more than two decades of experience, she is prepared to assist you with making educated decisions about your medical debt so that you can protect your financial future.
Still have questions? Ready to get started? Contact Bach Law Offices today to schedule an initial consultation.
You cannot include future medical expenses, so it is best to wait to file if you know you have an upcoming medical procedure. If you can arrange a medical plan with the hospital, it would behoove you to hold off on filing until after you have received treatment.
Anywhere that you file for bankruptcy will result in your medical providers being informed. All of your creditors (including medical providers, credit card companies, doctors, and even personal friends from whom you have received loans) will be informed of your filing for bankruptcy.
It so happens that Illinois is a very good state in which to have medical debt problems. Simply put, Illinois has laws that dictate how hospitals should handle patients who are facing financial distress over medical bills. I have even seen situations where; after filling out paperwork and sending it to the hospital, clients have had their entire bills forgiven due to certain criteria being met.
On the other hand, I have also seen a case where someone had a $9,000 out-of-pocket expense after receiving surgery. Even though this person had a good income at the time, the hospital accepted $100 per month as a payment plan. This means that even with a good income, this person will be in debt to the hospital for a long time.
By law in Illinois, hospitals are required to offer you a way of paying off your debts that works for you. However, these means do not always work for everyone and generally only include hospital bills, with other medical bills still outstanding.
The first step is to see if you need to file bankruptcy or if you can make your payments manageable. The next step is to figure out whether you need Chapter 7 or Chapter 13. In rare cases, you may need Chapter 11 bankruptcy.
In my 20 years of experience with individuals and businesses facing bankruptcy, one thing I have learned is that nobody is expecting bankruptcy, and nobody is happy about it. Many view it as a personal failure when they are unable to take care of themselves, their families, and their finances.
Please understand that filing for bankruptcy does not mean you are a failure. No one chooses to lose their job, suffer from major medical bills, or experience a pandemic.
It can be very difficult to move past the guilt associated with filing for bankruptcy; I focus on making sure you understand that you are not alone and that there is a light at the end of the tunnel. Erasing the stigma can be difficult, but it’s important to not feel alone while you are going through this vulnerable time.
Are You Seeking Further Assistance?
If you need more help determining if Bankruptcy Is The Right Choice For Medical Debt Deliberation, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (847) 440-5998 today.
Attorney Penny Bach is a seasoned lawyer based in Cook County, Illinois, who has helped countless clients just like you navigate the intricacies of medical debt deliberations. With more than two decades of experience, she is prepared to assist you with making educated decisions about your medical debt so that you can protect your financial future.
Still have questions? Ready to get started? Contact Bach Law Offices today to schedule an initial consultation.
