Chapter 7 Bankruptcies in Chicago often caused by Medical Bills
Many Americans are facing insurmountable debt due to medical bills. In fact, medical expenses are the leading cause of bankruptcy filings. With the outrageous cost of treatments, procedures and medications and the lack of adequate insurance coverage, more and more Americans fall into debt because of a health emergency or chronic medical conditions. Many residents may have the right intentions, attempting to pay off the debt, but simply don't have the available funds to do so.
Our Chicago bankruptcy attorneys would like you to know that there are ways to rise up out of debt and to get your life back.
While you have the option of debt settlement or debt management to help you straighten out you finances, some would argue that filing for Chapter 7 bankruptcy in Chicago is the most logical option of all as it can help you eliminate debt and start over with a clean slate. Even in cases where you can reach an agreement to pay the bank less than what is owed, you could end up in tax trouble as the forgiven debt will count as income for tax purposes, according to FOX News.
Filing for a Chapter 13 bankruptcy would still require that a client pay a court ordered amount of the debt. This will happen if a person does not meet the income restrictions to file for Chapter 7. But, in either case, the consumer would be afforded the significant protections afforded by federal bankruptcy laws.
In addition to helping to alleviate medical bills, filing for Chapter 7 bankruptcy can also help you to eliminate other debts including personal loans, utility bills, credit card debts, IRS debts, wage garnishments and payday loans. In some cases, your debts can be discharged in a few months. In the event of a discharge, debtors are released from personal liability for most debts and it stops creditors from taking further action against you.
Merely filing for bankruptcy protection will immediately stop foreclosure actions, creditor calls to your house, attempts to garnish wages and other aggressive tactics of debt collectors.
If you are dealing with the type of astronomical medical bills that frequently accompany a medical emergency, we urge you to contact an experienced bankruptcy lawyer to find out if Chapter 7 bankruptcy is the debt solution that may be right for you.
If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.