Can Bankruptcy Help You with Medical Debt?
At Skrupa Law Office LLC, we realize that bad things in life can happen at the worst possible times. Believe it or not, medical bills are one of the main reasons our clients file for bankruptcy in Omaha and Lincoln. The main reason many fall behind on bills isn’t neglect. Instead, it’s usually caused due to health insurance never covering the large costs of emergencies that happen. In most cases co-pays for prescriptions and doctor visits are affordable; however, when an unexpected event happens you might find yourself in a terrible situation.
Medical Debt Bankruptcy Examples
In the case of a car accident, it may take years for the insurance company to settle. During this time multiple health care providers can turn over past due accounts over to collection agencies and attorneys for garnishment. Filing bankruptcy can be an option to keep the creditors off your back until you can receive your insurance proceeds.
Work related injuries can have the same result on your finances. The benefits you receive under your Workers Comp Insurance may not be enough to cover your living expenses. Bankruptcy will put a stop to these collections efforts so you can move on with your life.
Most of the time insurance only covers 70% of what you owe, and while that is a big chunk, the other 30% can quickly add up. At Skrupa Law Office, LLC, with offices in Omaha and Lincoln, we know this story too well. The good news is our expert bankruptcy attorneys at Skrupa Law have a solution for you!
Warning: Did you know that you can be held responsible for the medical debts incurred by your spouse? It’s true. Under the laws of most states you are responsible for your spouse’s medical debt even if you had nothing to do with the situation. Nebraska Revised Statute 42-201 provides that “…..all property of a married woman, except ninety percent of her wages, not exempt by statute from sale on execution or attachment, …..shall be liable for the payment of all debts contracted for necessaries….”. What this is saying is that a spouse may be held liable for her Husband’s medical debts and vice versa. Under this so-called “Doctrine of Necessities” you could potentially be held liable for the debt even after you get divorced or are separated. There are many exceptions to this Doctrine so please check with Skrupa Law Office for more details.
How Our Omaha and Lincoln Bankruptcy Lawyers Can Help
We often see medical bills going on the back burner, as families are more preoccupied with taking care of their mortgage, car loans, utilities, and putting food on the table. Below, our Omaha bankruptcy attorneys have laid out a few options you have to take care of these debts.
Medical Debt Options
Here at Skrupa Law, our Omaha bankruptcy experts want to explain to you the two options to consider when it comes to filing bankruptcy for medical debt. Bankruptcy can help reduce or eliminate debt depending on which chapter is filed. You may qualify for one or both based on your income.
Chapter 7 Bankruptcy
This filing removes or discharges unsecured debts like credit cards, loans, and your medical bills. In order to qualify for Chapter 7 bankruptcy in Omaha, you’ll have to pass the means test. This test will determine how much money you make and if you are in fact able to pay back your debt in due time. If you pass the means test, you will continue to file for Chapter 7 — If you don’t, your option is to file for Chapter 13.
Chapter 13 Bankruptcy
This filing consolidates debts into an affordable monthly payment plan based on how much you can afford to pay after your other bills are paid for the month. Our Omaha bankruptcy team wants you to know that Chapter 13 bankruptcy can also put a stop to foreclosures and repossessions if that is a worry looming over your head as well.
Contact Skrupa Law Today in Omaha at (402) 571-2900 or Lincoln at (402) 464-3311
We here at Skrupa Law understand how important it is to take care of your family and how stressful it can be to worry about medical costs in the event of an emergency. If you have any questions or concerns about the bankruptcy process, contact us today through the contact form on our website or call us at (402) 571-2900 in Omaha or Lincoln at (402) 464-3311. The consultation is free and everything is confidential. Don’t wait until it’s too late.