Illnesses can strike us when we least expect them. Not only can they cause a lot of pain, stress and suffering, they can also be a heavy financial burden on a household. When a parent, child or any individual gets ill, it is likely that they will need to be cared for by another individual.
For example, when a child becomes ill for a lengthy period of time, a parent may have to take unpaid leave in order to care for him or her. In addition to this loss of income, medical bills can become extortionate if medical insurance is not adequate.
It is no surprise that long-term illnesses are one of the leading causes of bankruptcy filings across the United States. While it is difficult to be able to prevent such financial difficulties when one becomes ill, it is important that those struggling with debts due to medical bills know the possible benefits of filing for bankruptcy.
How can bankruptcy help people who are struggling with medical bills?
Bankruptcy has the potential to help any person who is struggling to repay their debts while dealing with creditor collection attempts. However, bankruptcy differs widely depending on which Chapter is being filed.
Chapter 7 bankruptcy has the benefit of being able to cancel many of the person’s debts but this can also mean that many of the debtor’s assets will be liquidated in the process.
Chapter 13 bankruptcy helps the debtor to keep assets such as the car and family home and leverage their disposable income to develop a repayment plan. However, this can mean a very tough and rigid period of repayment.
It is always best to take action early when you run into financial difficulties. For example, if you start to suffer with an illness without adequate medical insurance, you should start to think about the financial implications before there is a serious problem.
If you are considering filing for bankruptcy in the state of Maryland, you should make sure that you conduct thorough research and understand the magnitude of the financial commitment before deciding to file. You should also research the different bankruptcy options.