Medical debt is a major issue in the United States. In fact, more than a million people file bankruptcy each year as a result of accumulating too many medical bills. Have you become a part if this statistic? No doubt, being consumed with such a debt that never seems to end can lead to financial struggles and can even cause depression for some individuals. It’s important to know that there is help available. Here at Resolvly, we have several years of experience in helping clients free themselves from medical debt.
Medical Debt Consolidation Can Help
Perhaps the best way to address medical debt is through consolidation. Medical debt consolidation is a term that you’ve probably heard before. It can help borrowers successfully manage the debt they’ve accumulated by negotiating lower interest rates, having payments reduced or extending a payment plan period. Consolidating debt is an ideal option for individuals who don’t have medical insurance or people who don’t qualify for any type of financial assistance.
One way medical debt is consolidated is through a personal loan that allows you to merge all of your bills in one including credit card related payments into one low-interest rate. The biggest benefit of this is that it allows the borrower to pay off their debts in one single payment. For the best results, it’s imperative to start the consolidating process as soon as possible.
Bankruptcy and Medical Debt
Did you know that medical debt is the lead causing of bankruptcy? What many people don’t know is that not all debts are treated equally under bankruptcy laws. Medical debt is considered an unsecured nonpriority debt under chapter 7 bankruptcy laws. This means that your medical bills won’t be considered a priority. Therefore, if an individual qualifies for Chapter 7 bankruptcy all credit related debts will be cleared first. However, a large portion of the accumulated medical debt can be relieved through bankruptcy and eventually wiped free in the discharge.
At Resolvly, our team of attorneys can negotiate settlements with medical debt collection agencies and creditors to help you receive the best interest rates on your debts. Let our team examine contracts and agreements to ensure that also is in your best financial interests. In addition, we also help our clients explore bankruptcy options when can be intimidating for many. In the event, your medical debts have made it to collections, seek out an attorney for protection against unfair debt collection practices.