When Can You File for Medical Bankruptcy in New Jersey?
When dealing with medical debt and creditors, individuals in New Jersey might feel at a loss. To address their medical debt once and for all, debtors can file for bankruptcy in New Jersey.
If you have considerable medical debt in New Jersey, consider filing for bankruptcy. Bankruptcy can help you address your debt through a repayment plan or liquidation plan, removing the financial strain medical debt may be causing you and your family. Depending on your needs and finances, filing for Chapter 7 or Chapter 13 bankruptcy to eliminate medical debt may be beneficial. Within a relatively short period of time, you can address your medical debt, repay creditors, and move forward debt-free by filing for bankruptcy in New Jersey.
Our lawyers are here to help medical debtors in New Jersey regain their financial stability by filing for bankruptcy. For a free case evaluation with the New Jersey bankruptcy attorneys at Young, Marr, Mallis & Associates, call today at (609) 755-3115.
When Should You File for Bankruptcy to Address Medical Debt in New Jersey?
Medical debt can feel oppressive, following individuals through life and damaging their financial stability. If you are dealing with substantial medical debt in New Jersey and are looking for a way to regain your footing, filing for bankruptcy may be the solution you need.
Bankruptcy is a tool used by many to eliminate certain qualified debts. Some might think that filing for bankruptcy is exclusively for those having business or income issues. In reality, bankruptcy can help you find stability when facing a wide range of debts, including medical debt.
While there is no type of bankruptcy that addresses medical debt specifically, you can file for bankruptcy to target any medical debt you may have. Because medical bills are considered unsecured debts, they are relatively easy to rid yourself of via bankruptcy.
When you file for bankruptcy to address medical debt in New Jersey, an automatic stay will go into effect. This prevents creditors, like hospitals, from reaching out to you and harassing you to meet payments. Automatic stays can provide immediate relief to debtors struggling with overwhelming medical debt.
If you are hesitant to file for bankruptcy to address your medical debts, speak with our attorneys. Our North Jersey bankruptcy attorneys can explain the benefits of taking this route and how doing so can help you regain stability after struggling with medical debt for so long.
Which Type of Bankruptcy Can Help You Eliminate Medical Debt in New Jersey?
When deciding to file for bankruptcy to eliminate medical debt in New Jersey, debtors must choose which type of bankruptcy they wish to file for. Depending on your needs, Chapter 7 or Chapter 13 bankruptcy may be preferable. Our New Jersey bankruptcy attorneys can lay out the differences between these two types of bankruptcy so that you can address your medical debt and exit bankruptcy debt-free in New Jersey.
Filing for Chapter 7 bankruptcy in New Jersey can help you eliminate your medical debt quickly but at a cost. Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy. This means that certain assets of yours, like your home or your car, may be liquidated to pay off medical creditors in New Jersey. For debtors with families and others that depend on them and their assets, filing for Chapter 7 bankruptcy may not be ideal for addressing medical debt.
Not everyone can file for Chapter 7 bankruptcy to eliminate their medical debt. Eligibility for Chapter 7 bankruptcy is needs-based, meaning debtors must pass a means test in order to qualify. Essentially, your income over the past several months must be insufficient to pay off some of your medical debt in order for you to qualify to file for Chapter 7 bankruptcy. Our New Brunswick bankruptcy attorneys can assess your income and current medical debt to determine whether you are a good candidate for Chapter 7 bankruptcy.
Depending on your situation, you may be able to file for Chapter 13 bankruptcy to address your medical debt in New Jersey. Chapter 13 bankruptcy does not work through liquidation of assets but instead through a repayment plan. After you file, our lawyers will submit a repayment plan to the court detailing how you intend to pay creditors based on your income. This enables debtors to address medical debt over time without worrying about harassment from creditors.
In order to qualify to file for Chapter 13 bankruptcy in New Jersey, debtors must pass a means test. Essentially, debtors must earn a sufficient monthly income to meet the requirements of their repayment plan to creditors. If you do not earn enough income, you may not be able to use Chapter 13 bankruptcy to address your medical debt in New Jersey.
When Can You Be Free from Medical Debt After Filing for Bankruptcy in New Jersey?
After filing for bankruptcy in New Jersey, you can remove all of your medical debt within a matter of months or years. Once you do, you can be debt-free, allowing you to move forward with your life and regain your financial stability.
Depending on the type of bankruptcy you file for to address medical debt, the process may take longer. Because Chapter 7 bankruptcy works through liquidation, it is generally the fastest option. Often debtors in New Jersey can remove medical debt within half a year by filing for Chapter 7 bankruptcy.
Chapter 13 bankruptcy generally takes longer to complete, especially if debtors have substantial medical debt. If you hire our Trenton bankruptcy attorneys to configure a comprehensive and efficient repayment plan, you may be able to remove your medical debt within three to five years.
Ask Our New Jersey Lawyers About Filing for Medical Bankruptcy Today
If you need to eliminate medical debt, our attorneys can help you do so by filing for bankruptcy. For a free case evaluation with the Marlton, NJ bankruptcy attorneys at Young, Marr, Mallis & Associates, call today at (609) 755-3115.