When Your Medical Debt Becomes Too Much
What Are Your Options?
When you are facing a medical emergency, the last thing on your mind is the financial implications of hospital stays, medical procedures and treatments. However, once the dust settles and the bills start coming in, you may find yourself facing another kind of crisis.
Can Medical Debt Be Discharged in Bankruptcy?
The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.
Understanding Bankruptcy
There are two main types of bankruptcy, including Chapter 7 and Chapter 13. While both types address large debt, the way they work is quite different.
With Chapter 7 bankruptcy, the court considers what you owe and what income and assets you must put toward your debt. With this route, you are likely to have to sell some of your belongings, including property or vehicles, to satisfy your debt. The whole process takes about six months, and in the end, your eligible debts are forgiven. Your credit report reflects the bankruptcy for a decade, making it difficult to get a mortgage, a car loan or a personal loan.
Chapter 13 assesses what you owe, your income, assets and comes up with a repayment plan to make the debt more manageable. In most cases, monthly payments do not exceed 15% of your income. This process can stretch out for years, and certain criteria must be met.
Other Options for Handling Medical Debt
Bankruptcy is an extreme measure that has long-lasting implications on your credit. Fortunately, there are other options for tackling medical debt.
Review Your Bills
Medical bills can be daunting, and if you are like most people, the number you focus on is the total amount you owe. However, auditing your bills and looking for errors such as double charges, fees for services not ordered nor received, can knock hundreds or thousands of dollars off the bill.
Negotiate Costs
In some cases, you may be able to work with your medical provider to get lower costs for services. Some providers have sliding fee schedules for income-qualifying patients, especially those who do not have health insurance.
Investigate Financial Assistance Options
Local agencies such as charities and Community Action Partnerships often have emergency assistance for income-qualifying individuals facing medical debt that they cannot pay.
Talk to Your Medical Provider
Some providers would rather work out an affordable payment plan than send the debt to collections or see it end up in bankruptcy.
Preventing Medical Debt with Nevada Insurance Enrollment
While you cannot always avoid a medical emergency, health insurance can help ensure that your medical bills do not become too much to handle. At Nevada Insurance Enrollment, our health insurance agents help you evaluate your health needs and budget and determine what policies are right for you.
Recent Posts
The Tow Truck Damaged My Vehicle After An Accident
This also applies to damage that occurs after the accident. While you may consider the damage from the accident and the damage from the tow truck to be all one incident, your insurer will view it differently.
A Friend Wrecked My Car, What Happens Next?
If your friend was hit by an insured driver, the process will be simple enough. The at-fault driver will file a claim with their insurance company, who will pay to get your vehicle back to pre-accident condition. If the collision was bad enough to cause an injury, the at-fault driver’s auto insurance could also cover medical bills, lost wages and any other expenses associated with the accident.
Why Every Household Driver Should Be On Your Auto Insurance Policy
Generally speaking, anyone who lives with you that has a drivers license – whether they’re a member of your family or not – is considered by your insurer to be a member of your household. College students away from home without a vehicle aren’t required to be on a policy, and could be a “permissive” driver.
Search This Website
Most Popular Pages
By page visits (this month)
#1) Health Insurance Subsidy Chart
#2) Health Insurance
#3) Health Insurance WITH a Subsidy
#4) Insurance Blog
#5) Request a Quote
Top 5 Most Popular
By page visits (this month)
#1) Health Insurance Subsidy Chart
#2) Health Insurance
#3) Health Insurance WITH a Subsidy
#4) Insurance Blog Posts
#5) Request a Quote
Recent Posts
Year Round Enrollments For Health Insurance Ended 10/1/2019
Up until 10/1/2019, Nevada residents had the option of enrolling in off-exchange health insurance plans at any time during the year. The catch? There was a 90-day waiting period after enrollment before coverage becomes effective.
Does Driving Record Affect Auto Insurance Rate?
While your auto insurance provider bases your monthly premium on numerous factors, including where you live, how old you are and whether you rent or own your home, the factor that most significantly affects your premium is your driving record.
Two of the Most Naïve and Aggravating Things Insurance Agents Hear
Many people don’t recognize the value of life insurance and health insurance until they actually use it and may even think they can work around high medical or funeral expenses.
Exchanging Insurance Information After an Accident
Unfortunately, failing to collect the other driver’s personal information and provide them with your own can delay the claims process. On top of that, in Nevada, leaving the scene of an accident without providing personal information is technically a hit and run, which could result in criminal charges.