New Jersey bankruptcy attorney Daniel Straffi (https://www.straffilaw.com/can-my-medical-debt-be-paid-off-with-bankruptcy/) releases a new article explaining whether Medicaid can be paid off with bankruptcy. The lawyer mentions that the US has one of the healthcare costs in the world. This situation has caused many Americans to accumulate an exorbitant amount of debt. In a study by Kaiser Family Foundation, it is expected that the total medical debt in the US has reached at least $195 billion, with the figure expected to rise to account for debt incurred during the Covid-19 pandemic.
“These figures do not account for other financial obligations a person can have, like utility bills, rent, and the cost of education, even without having to deal with illnesses or injuries. Facing such financial struggles can leave a person feeling helpless. Bankruptcy can offer a level of protection and allow you to recollect yourself and gather your resources in the interest of a fresh start,” the New Jersey bankruptcy attorney says.
Many people with larger consumer debts usually seek loans from family members. These debts can also force people out of their homes. Medical debts only increase as the need for medical care grows as people get older. In fact, in the same study made by the Kaiser Family Foundation, one out of five adults do not expect to ever be able to pay their debt off.
In the article, the lawyer discusses that there are many kinds of bankruptcy in the USA. Depending on the financial situation and the kind of entity, a person may be able to file for bankruptcy.
Attorney Straffi says, “There are two types of consumer debt, secured and unsecured. Secured debt typically refers to debt that has collateral serving as security against non-repayment of the loan. Unsecured debt is issued to debtors depending on the creditworthiness of a debtor. Due to the existence of the collateral for secured debt, there is less risk of the debtor defaulting on the debt.”
The type of debt will determined the type of bankruptcy one may file for. There is no specific bankruptcy type that applies to medical debt. However, most unsecured debts are typically discharged once the bankruptcy is finalized. For this reason, many people opt to use Chapter 7 and Chapter 13 bankruptcy.
Lastly, attorney Straffi emphasizes the importance of having a skilled bankruptcy attorney when filing for bankruptcy. A skilled lawyer may be able to help the client understand their rights and how they can use bankruptcy to start anew.
About Straffi & Straffit Attorneys at Law
Attorney Daniel Straffi is an experienced bankruptcy and family law attorney who has years of experience in helping clients deal with bankruptcy and other family law matters. They provide their clients with a high level of personal service for every case they take. Contact Straffi & Straffi Attorneys at Law today to learn more about their services.
About Straffi & Straffi Attorneys at Law
Straffi & Straffi Attorneys at Law is proudly run by the father-and-son team of Daniel Straffi, Sr. and Daniel Straffi, Jr. who has over 40 years of combined experience. They’ve been representing clients throughout Southern and Central New Jersey for…
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