Does Bankruptcy Eliminate Medical Debt If I Get Sick From the Coronavirus (COVID-19)
If you have medical debt and are thinking about filing bankruptcy, you should not ignore these bills. Many individuals will start by receiving late payment notices. Ignoring these can eventually lead to a medical provider suing you and getting a money judgment against you. A money judgment can lead to a wage garnishment, bank levy, or the placement of a lien on any property that you own. These can have huge impacts on your credit score and financial situaion. When a creditor gets a judgment against you, they can garnish up to 10% of your gross wages. This can be a large lump sum for people who are already struggling to make ends meet.
Filing bankruptcy to get rid of medical debt, can be a great way to get back on your feet. Individuals looking to file bankruptcy, have two options. They can file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.