Harvard study found that nearly 70% of bankruptcy cases are Medical Bankruptcy. With today’s high deductibles, the situation hasn’t improved. Illness can mean time off of work and reduced income. Medical Bankruptcy eliminates medical debt, but only the medical bills that are owed as of the date of filing your bankruptcy petition. If you are currently running up medical bills you have a couple of bankruptcy options: You can wait until your medical problems are over and then file a Chapter 7 case. If you can’t wait that long, you can file a Chapter 13 bankruptcy case and gain protection from your creditors until you are done incurring the medical debt. At that point, you may be able to convert your case to Chapter 7 and include all of the medical debt owed at that point.
There have been many examples of desperate people who encounter severe financial difficulties due to medical expenses. It’s extremely critical that you speak with a professional so that you have all of the information you need to make the best choice possible. Put your future in the hands of an experienced Minneapolis Bankruptcy Attorney. Gregory Wald is rated as “Superb” by the AVVO attorney rating company.
For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald for a consultation.
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The banks have spent millions of dollars on lobbyists and were able to get Congress to pass a law that everyone who wants to file bankruptcy must first complete a briefing (counseling session) with a consumer credit counselor. If the idea was to steer people into debt management plans, then the new law hasn’t worked out well for the bankers. Almost no one who completes the pre-bankruptcy briefing goes on to enter into a debt management plan. However, the counseling session is not all bad news. Many people do feel that they received useful information on budgeting and saving money from the counseling session.
When a person has filed bankruptcy in the past, they may want to know how long they must wait to file bankruptcy again. If a person has filed a Chapter 7 bankruptcy petition and received a discharge of their debts, they must wait 8 years before they can file another Chapter 7 petition. However, the waiting period to receive a discharge in a Chapter 13 case after a previous Chapter 7 case is only 4 years. Sometimes unfortunate circumstances create a need for a second bankruptcy in less than 4 years after the filing of a Chapter 7 case. You can file a Chapter 13 case less than 4 years after filing a Chapter 7 case and receive court protection from your creditors, but you won’t receive a discharge of your debts. It sometimes makes sense to file such a case to prevent foreclosure of a residence or to receive court protection from creditors.