When a Tennessee resident is diagnosed with cancer, it’s important to concentrate on overcoming the disease. However, a patient may also find that financial worries continue to haunt them throughout the treatment process. Indeed, there are good reasons for these concerns; even people with health insurance often struggle to pay their medical bills during cancer treatment. Prescription drugs can cost in the thousands of dollars and treatment can amount to $150,000 or more.
According to one 2013 study, cancer patients are over 2.5 times more likely to declare personal bankruptcy. While a number of factors can contribute to this decision, including forced time away from work and job loss due to illness, medical debt is one major issue for those who have gone through cancer treatment. Bankruptcy can provide a road to a new financial future because creditors cannot continue to collect debts once the process begins. Collection calls can add additional stress to an already tense and fragile medical situation. For people struggling with medical bills and credit card debt, bankruptcy can offer significant relief.
There are two major types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcies can eliminate a range of debts. Assets may need to be sold off to repay creditors, but personal assets can be protected. On the other hand, Chapter 13 bankruptcy restructures debts and creates a multi-year payment plan with new terms. Property is not at risk for being sold under a Chapter 13 filing.
An individual who is struggling with insurmountable debt after a medical crisis may feel desperate at a time when they need support. However, a bankruptcy attorney can provide advice and guidance on options that a client can access to seek debt relief for the future.