A bankruptcy attorney Corona CA’s job is to help their clients reduce their debt burdens to a more manageable level. Our office offers both Chapter 7 and Chapter 13 bankruptcy filings in order to help clients achieve financial freedom in the way that best meets their needs.
For example, you might be able to discharge medical debts completely through Chapter 7, because medical debts are considered unsecured debts. But if you are not eligible for Chapter 7, you can still reduce your debt load and your monthly medical bill payments through Chapter 13. However, because we want the best for our clients, we actually hope that they can avoid getting into a situation where the help of a bankruptcy attorney Corona CA would be required in the first place.
Here’s a bit of advice about avoiding medical debts, which are one of the most common contributing factors to the bankruptcy cases we see in our office.
Get Catastrophic Health Insurance
If you can’t afford standard health insurance, or simply choose not to have it, at least make sure that you have catastrophic health insurance. Also known as a High Deductible Health Plan, this type of insurance will prevent you from racking up tens of thousands of dollars in medical expenses if you suddenly fall seriously ill or are involved in an accident. Your deductible may be a thousand dollars or more, but your monthly expenses will be quite low. The protection this insurance affords can help keep you out of bankruptcy court after emergency health problems.
Check for Errors
People do occasionally get overbilled for medical care. Always check your bills carefully against the explanation of benefits provided by your insurance (if you have it). Also verify that the proper billing codes have been used and that you have not been charged for any procedures you didn’t actually have. You may have to spend months disputing the issue with the insurance company or the medical facility, but if you are persistent you can get errors corrected and save money on your bills.
Ask for a Payment Plan Early
If you’re struggling to pay your medical bills, don’t wait until they become overdue or go into collections to try to negotiate a payment plan. Ask for help right away. Getting a revised payment plan from the first moment you feel a financial pinch can help you stay on top of your bills and avoid being harassed by debt collectors later on. In some cases, medical facilities will even reduce your principal or your interest rate in order to help you meet your obligations.
Remember, if you do get overwhelmed by medical bills, it’s not the end of the world. Come visit your friendly neighborhood bankruptcy attorney Corona CA to find out if filing for bankruptcy is right for you.
