A recent post on this blog discussed how more and more people in Michigan and throughout the country are being forced to file for bankruptcy in order to get debt relief from overwhelming medical bills. Many Michigan residents who have had to have an expensive medical procedure may currently be wondering how on earth they will be able to make ends meet.
It is true that hospitals may be willing to negotiate the amount on a portion of their bills; it is also true that a person could always pay off medical bills using a low interest credit card or by taking out some sort of personal loan.
The drawback to this approach is that it does not actually pay off a debt but simply shifts it. If a person who resorts to one of these alternatives later winds up with more medical bills, then they will be facing double the trouble in the form of two types of mounting debt. Moreover, assuming that a medical bill carries no interest, then a person who refinances trades a no interest loan for a loan that grows each month from the interest that accrues.
People who are in this situation have options. If they qualify, they could choose to file a Chapter 7 bankruptcy. A well-planned Chapter 7 filing can leave a person free of burdensome medical debt yet still able to maintain a reasonable standard of living. Other debtors, for a number of reasons, may choose to file a Chapter 13 bankruptcy. A Chapter 13 can take off the pressure that a debtor might feel from aggressive collectors while the debtor works to pay back a portion of their medical bills.
Whatever option may be right for the debtor, The Smith Law Offices can help. Our experience and skill has led to positive results for many debtors who were facing financial hardship because of medical bills or other reasons.