Q: My son was very ill last year, and required extensive medical care. We had major medical health insurance coverage, but there are a lot of bills that the insurance does not cover. What are my options?
A: Unfortunately, your situation is not unique in this day of escalating
medical and insurance costs. If you are currently employed, you could try to negotiate
a lower payment to each of the medical providers you owe, and agree upon a payment schedule.
If the amount you owe is overwhelming, you should consider talking to an attorney about
filing bankruptcy.
A Chapter 7 bankruptcy, also known as a liquidation bankruptcy,
allows for the discharge of certain types of debts. However, it also requires that you
forfeit any assets which do not fall within the exemptions.
Under a Chapter 13 bankruptcy,
also known as a wage earner’s plan, certain debts may be discharged, but others are paid at
least partially under a plan approved by the bankruptcy court.
Your individual situation will determine which form of bankruptcy may be best for you.