Bankruptcy Due to Medical Bills in New Jersey

Struggling to pay medical bills can be very discouraging, especially when medical care is a necessity. Sometimes, medical bills can be so overwhelming that you feel like there is no end in sight.

However, there are solutions for handling medical debt that are available to you. An experienced bankruptcy attorney from New Jersey could talk with you about your options and explain bankruptcy due to medical bills in New Jersey. Call today to schedule a consultation.

Treatment of Medical Debt in New Jersey

The good news about medical debt is that this type of debt is discharged when someone files for bankruptcy. A discharge in bankruptcy is an order that is issued by the judge near the end of the bankruptcy proceedings that eliminates personal liability for medical debt as well as other unsecured debt. After a discharge is issued, the person should no longer have to worry about the medical debt that was incurred before they filed bankruptcy.

In a chapter 7 bankruptcy, a person’s medical debt will be discharged at the end of their bankruptcy. In a chapter 13 bankruptcy, the medical debt may be paid, usually over a three to five-year period, as part of a payment plan. In a chapter 13 plan, the amount someone pays each month towards debt is based on their disposable income so they can afford the monthly expenses. Filing for bankruptcy will also prevent further collections activities that may occur against the debtor. These collections activities include letters, phone calls, and lawsuits against someone for unpaid medical debt.

Will Filing for Bankruptcy Affect the Ability to Get Medical Help?

Continuing to receive medical treatment for an ongoing medical issue may be a concern as well as the ability to obtain medical care should this need arise in the future. When it comes to emergency medical treatment, there is a federal law in place known as the Emergency Medical Treatment and Active Labor Act that requires emergency healthcare services to be provided to individuals whether they have the ability to pay for those services.

When it comes to non-emergency medical care, a healthcare provider can make the decision to deny medical care based on the bankruptcy filing. However, it may be possible for someone to approach a healthcare provider to see if they can set up a plan for future medical services. This may be helpful, especially in situations where someone likes their doctor and would like to continue to receive services from that doctor. While not required, a person filing for bankruptcy is also allowed to voluntarily pay for the medical debt that was discharged in their bankruptcy. This may help with continuing to receive services from the same health care provider. To learn more about how a lawyer could help an individual who is filing bankruptcy due to medical bills in New Jersey, contact a seasoned attorney today.

Get More Information from a Bankruptcy Attorney

The financial difficulties you may face when trying to keep up with paying medical debt along with your other expenses can be very challenging. Yet, there may be a way for you to both resolve your medical debt and continue your relationship with your healthcare provider.

A well-established bankruptcy attorney from New Jersey could review your situation and help you formulate a plan if necessary to proceed with bankruptcy due to medical bills in New Jersey. Call today to learn more.