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Filing for bankruptcy may be the answer to growing medical debt

The myth about bankruptcy is that people who file for bankruptcy are bad with money. This, however, is far from the truth. In reality, according to some reports about half of all bankruptcies filed in the U.S. each year are due to medical expenses. Sadly, with rising health care costs and the growing need for medical care, these numbers are only likely to rise. Tennessee readers struggling with medical debt may find the following article helpful.

Deciding when to file for bankruptcy is a tough decision. There is no clear rule of thumb, but all too often consumers drag out the inevitable, causing themselves unnecessary pain. One clear indication that it may be time to consider filing for bankruptcy is when people start dipping into bankruptcy exempt assets like retirement funds to pay bills. This is always a bad idea since an exempt asset is protected in bankruptcy.

If it is time to file for bankruptcy the next thing to consider is whether to file for Chapter 7 or Chapter 13 bankruptcy. How a person files will affect a number of things from the exemptions available to the overall process. Chapter 7 bankruptcy is known as liquidation bankruptcy, because it allows people to liquidate almost all of their debt without having to establish a repayment plan as they would be required to do in a Chapter 13 bankruptcy.

Regardless of whether a consumer chooses Chapter 7 or Chapter 13 bankruptcy, filing for bankruptcy can provide them with the fresh start they need to overcome their financial challenges and mounting medical bills. To learn more about the benefits of bankruptcy or how to manage overwhelming medical debt speak with an experienced debt relief professional. There is no reason to struggle with debt in silence any longer.

Source: The Dickinson Press, "Bankruptcy: A clean slate, but at what cost?" Sherri Richards, July 25, 2013

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
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