Philadelphia Medical Debt Bankruptcy Lawyer

Philadelphia Medical Debt Bankruptcy Lawyer

A common reason that people seek bankruptcy relief is medical debt or loss of income due to injury or illness. This is not at all surprising, considering that in 2016, a reported 17% of uninsured Americans and 31% of insured Americans took money out of college, retirement, or other long-term savings in order to pay medical bills. Additionally, about 17% of insured and 11% of uninsured had to take out another type of loan in order to pay for medical expenses. As healthcare costs continue to rise, many individuals and families find themselves struggling to make ends meet while paying back hospital, dental, or doctor bills.

Even insured individuals can find themselves owing tens of thousands of dollars in medical debt. In these cases, sometimes the best option is to file for bankruptcy so that medical debts may be wiped out or reduced. Filing for Chapter 7 or Chapter 13 bankruptcy may help you satisfy medical debt you cannot repay, giving you a head start on debt relief. If you or a loved one is struggling financially because of medical expenses owed, filing for bankruptcy in Pennsylvania with the assistance of an experienced Philadelphia bankruptcy attorney may be the best option for you. To learn more in a free bankruptcy consultation, contact Sadek and Cooper Law Offices, LLC at (215)-545-0008 today.

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What Happens to Debt When You File Bankruptcy in PA?

If you have racked up a significant amount of debt that cannot be paid back right away and is continuing to accumulate interest, bankruptcy is often the best option. As soon as you file for bankruptcy, an “automatic stay” is enacted which freezes debt collection activities. The automatic stay buys time by freezing creditors’ collection actions. It also gives you, the debtor, more time to create a financial plan that will allow you to pay off your debt.

Furthermore, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy also gives debtors the opportunity to have debt, such as medical bills, partially or completely discharged. Once a debt is discharged, an individual is no longer obligated to repay it.

Each type of debt is treated differently in bankruptcy, with some debt having the option of being discharged, and some without that same option. Debts that are non-dischargeable, which debtors will always be held responsible for, include alimony payments, child support payments, most tax debts, and criminal fines.

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Can Filing Bankruptcy Get Rid of Medical Bills?

Medical debt is dischargeable, meaning it can be reduced or wiped out in Chapter 7 bankruptcy or Chapter 13 bankruptcy. Other examples of dischargeable debt include credit cards, utility bills, personal loans, business debt, rent payments that are past due, and Social Security overpayments.

If you are filing for bankruptcy with the hopes of totally or partially discharging your medical debt, it is important to know which type of bankruptcy will be most effective for you. For example, if you file for Chapter 7 bankruptcy, you will most likely be able to discharge all of your medical bills that are owed in addition to your other general unsecured debts.

If you file for Chapter 13 bankruptcy, the court will place you on a repayment (“reorganization”) plan that can last anywhere from three to five years. Within the terms of this plan, unsecured creditors must be paid the amount of money they would have received if the debtor filed for Chapter 7 bankruptcy. Thus, the amount of medical debt discharged in a Chapter 13 bankruptcy filing will depend on the specific facts of each case. In some cases, debtors will not pay any money toward their medical debts, while in others, a debtor will pay the bulk of the debt.

The type of bankruptcy that you will file for is based predominantly on your income. If you pass the bankruptcy “means test,” meaning that your current monthly income is less than the median income for a household of your size in your state, you may file for Chapter 7 bankruptcy. If your total disposable income exceeds a certain amount, you cannot file for Chapter 7 bankruptcy and therefore your only option is to file for Chapter 13 bankruptcy.

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Philadelphia Bankruptcy Attorneys for Medical Debt Relief

If you are considering filing for bankruptcy in Philadelphia with the intent to discharge your medical debt, it is imperative that you speak with an experienced attorney so that you fully understand what your best options are. Sadek and Cooper Law Offices, LLC handles bankruptcy cases in Philadelphia, Bucks County, Delaware County, Montgomery County, and the Southeastern Pennsylvania area. To learn more about how you can discharge your medical debt by filing for Chapter 7 or Chapter 13 bankruptcy, call the Philadelphia bankruptcy lawyers of Sadek and Cooper Law Offices, LLC at (215)-545-0008 for a free and confidential legal consultation.

 

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Lavern Baker
Lavern Baker
17:03 23 Feb 18
You are all super lawyers. Brad and Matt made me feel comfortable. Every one in your office so nice and just made it easy. You’re the best!
peter b
peter b
19:42 21 Feb 18
Thank you, Sadek and Cooper Law offices for your dedication on my behalf. I appreciate Matthew and Patrick and your staff and all that everyone did to support me in this legal matter. You took an embarrassing, sad experience, for me, and turned it into a successful solution without all the emotional pain expected. After dealing with a loan modification company for over eighteen months without going to an attorney first that is the biggest mistake anyone can make. The Modification Companies set out to sell you lies, broken promises and dilute the homeowner's assets with no knowledge of any kind of law. I can't stress enough stay away from Modification companies, as a Military Veteran and family man, protect you or your family best interest. Go directly to Sadek and Copper you will not regret it! This firm moves with Super speed and diligence protecting you and your family's the entire process, even after watching some of these other attorneys in the courtroom appearing to mishandled their clients’ cases before the Trustee. You made it easy and I’m finally getting my financial life back on track! Thank you for your prompt replies to me, your clear information and preparation needed when at the courthouse. I would of course recommend you to others and I am glad you were the one who had my case. Kind genuine law firm who treats you like family. God bless you all and I pray for your continued success in your field of expertise. This firm is Super Lawyers for a reason. They are the best at what they do! Pete
Doug Tinlin
Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
Jacinth Jacinth
Jacinth Jacinth
16:07 31 Jan 18
Excellent service. Brad and Matt were outstanding and friendly. They helped me through this. I’ve never met attorneys like these. Thank you!
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julie njoku
12:29 24 Jan 18
Brad Sadek is excellent!. He understands and he's fair. You feel like you have someone fighting for you. The staff is friendly, professional, and courteous. These guys are the best at what they do !
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20:14 09 Jan 18
Thanks for the great service! I would recommend this firm highly. Throughout the years I have been helped by this firm greatly and very much appreciated.
Steven Rychalsky
Steven Rychalsky
15:30 09 Jan 18
Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
Chris Kourelias
Chris Kourelias
19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
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21:17 21 Dec 17
Highly Recommended. Matt & Brad assisted with my case. I felt comfortable throughout the entire process. Matt was very understanding, patient, and ensured he answered all my questions! Both great guys and very friendly! It was a pleasure working with Matt and Brad.
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