Medical Debt & Bankruptcy Attorneys in McAllen, Texas

Medical Debt & Bankruptcy 

When making big financial decisions, you typically have control over when and what you’ll be buying. Purchasing a car or home, for example, are preplanned choices. But hefty medical bills, on the other hand, can ambush you when you least expect it.  

It’s an unfortunate reality that health insurance in the United States only serves as partial financial protection. When emergencies occur, recovery can be expensive and painful, physically and emotionally. Bills can seem overwhelming to handle, and distress can be high. Please know you’re not alone if you are or have experienced this. And, don’t wait for it to get worse — get the guidance you need from experienced bankruptcy and medical debt attorneys.  

You’re likely wondering, “Will filing for bankruptcy eliminate my medical debt?” Perhaps you’ve never considered it before, but bankruptcy may be the best path for you to achieve immediate relief from your financial stress. If you’re experiencing overwhelming medical debt and considering filing for bankruptcy, our team at Oliva Law Bankruptcy can answer your questions and personally guide you through the process.  

We proudly serve clients living in Corpus Christi, Harlingen, Brownsville, McAllen, Laredo, and throughout the Rio Grande Valley. Call us today to get set up with a free consultation. 

Understand Your Debt Relief Options 

There are better ways of taking care of your medical bills than using credit cards or opening a new line of credit. While these strategies are available, they act as more of a band-aid solution — you may think you’re reducing your debt, but when the debt to be paid off is astronomical, all you’re doing is increasing your interest rates. 

Don’t let a financial crisis interfere with your recovery when it doesn’t have to. Chapter 7 or Chapter 13 bankruptcy may be your ticket to a fresh start, and our bankruptcy attorneys can help you determine which path is best for you. 

Chapter 7 Bankruptcy 

If your income is below average and you have assets with little or no equity, then a Chapter 7 bankruptcy could be a great choice. You don't have to have a certain amount of debt – you can file for Chapter 7 on a single but substantial debt. Medical debt, for instance, will be wiped out in Chapter 7 bankruptcy. To learn more about Chapter 7 bankruptcy, contact our firm today. 

Chapter 13 Bankruptcy 

Because of your income level and assets, you may not qualify for Chapter 7, but you can file for Chapter 13 bankruptcy. Through this chapter, you'll pay back the portion of the medical debt you can afford through a customized repayment plan. The court will eliminate the remainder at the end of the case.  

Non-Bankruptcy Options 

Depending on your credit score, you may be able to resolve your medical debt with one of the following strategies: 

• Negotiate a settlement with your medical provider 

• Ask your hospital about assistance programs 

Everyone’s financial situation is different. Our team is well-versed in multiple chapters of bankruptcy and other debt-relief options. For practical advice that’s tailored to you and your family’s unique needs, contact us today and schedule a consultation.

Pros & Cons of Filing for Medical Debt Bankruptcy 

Filing for bankruptcy is often considered a worst-case scenario, but that’s simply not the case, especially when medical debt is involved. In a case study conducted on Americans who filed for bankruptcy between 2013-2016, researchers found that two-thirds of the pool cited medical issues as a contributing reason for their bankruptcy claim.  

But while filing for medical bankruptcy may be more common than we thought, you still want to make sure it’s the best option for you. The following are some pros and cons to consider before filing: 

Pros 

• Your medical debts can get completely eliminated 

• You’ll be able to keep important assets 

• If your credit score wasn’t great before, filing for bankruptcy may actually help improve it 

• By eliminating debt, bankruptcy can help lower your credit utilization, which positively impacts your score 

• Bankruptcy will give you a fresh financial start 

Cons 

• Bankruptcy can be a long and expensive process 

• You could lose certain assets of value 

• Potential negative impacts on your credit 

• Your credit score may drop significantly after filing for bankruptcy 

• You’ll receive higher interest rates and lower credit limits 

• Bankruptcy will remain on your credit report for up to 10 years