Not many people are comfortable filing for bankruptcy, since it has the consequence of devastating your credit and borrowing chances. However, there are instances where you have to file for bankruptcy, and as unbelievable as it seem, medical debt is one of the leading reasons for people to file for bankruptcy. According to the website of The Benton Law Firm, medical debt, accumulated from severe injuries such as those from an explosion or fire accidents, can cause financial troubles that could lead to people filing for bankruptcy.

Many people have filed for bankruptcy due to medical debts, and this is partly because medical costs have increased through the years. Workers who have lost their jobs due to workplace injuries and losing their health insurance benefits are among the ones leading the pack of filing for bankruptcy due to medical debt. Despite the negative reputation that comes with bankruptcy, it nevertheless helps in resolving the overwhelming debt and enables you to move forward.

For people who want to discharge their medical bills completely, they have the option of filing for a Chapter 7 bankruptcy. This type of bankruptcy aims to discharge debts, eliminating any unsecured debts that include credit card, some personal loans, utility bills, and medical bills. Because these debts are not tied to a piece of property, they can be treated a non-priority unsecured debt. Although there are medical debts that require repayment, a great remainder of it will be eliminated after the bankruptcy court issues the discharge. For significant amount of medical debts, filing for Chapter 7 bankruptcy may be the best option to relieve the financial burden.

Fortunately, there is no limit to the amount of medical debt that can be discharged by Chapter 7 bankruptcy, but first you should know if you are qualified or not. Consulting an attorney who knows how bankruptcy works would help in ensuring that you are filing for the right type of bankruptcy, especially if there are significant amount of assets that you do not want to exempt or lose.

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