Wipe Out Your Medical Bills

Do you find yourself drowning in medical debt? Perhaps you are receiving these bills unexpectedly or due to an emergency. In Olympia, Washington, many residents struggle with unpaid medical debts, which can lead to stress, collection calls, and even potential legal action.

If you are facing this situation, you should know there are ways to manage your medical bills and obtain much-needed relief. One of them is filing for bankruptcy.

An Olympia bankruptcy attorney can assess your financial situation and help you decide if bankruptcy is the right option in your particular case.

A Look at Medical Debt in Olympia

Medical debt is one of the more common types of debt in Olympia, Washington. With healthcare costs rising each year, many struggle to keep pace with their medical bills. There are many resources you can use to help manage your medical debt in Washington.

• Unpaid Medical Bills: This can result from emergency room visits, surgeries, and extended hospital stays.
• Insurance Gaps: You might have insurance, but still face high deductibles or uncovered procedures.
• Collection Calls: Medical debt is often quickly passed on to collection agencies, which can create added pressure and financial stress.

How Bankruptcy Can Help With Medical Bills

One effective way to relieve the financial burden your medical debt might have on you is through bankruptcy. Filing for bankruptcy lets you discharge or reorganize your debts, including medical bills. It can help you gain financial stability and end creditor harassment.

• Chapter 7 Bankruptcy: Commonly known as “liquidation bankruptcy,” it allows you to discharge most types of unsecured debt, including medical bills.
• Chapter 13 Bankruptcy: This allows you to restructure your debts and create a manageable three- to five-year repayment plan. It essentially gives you a way to pay off medical bills over time while avoiding foreclosure or repossession.

Consult a skilled bankruptcy attorney in Thurston County if you’re considering bankruptcy to manage your medical bills in Olympia. They can help you navigate the process and ensure that your medical debt is properly handled.

Washington State Laws and Medical Debt in Olympia

There are many laws in place to protect Washington residents dealing with mounting medical debt.

• Washington Consumer Protection Act (RCW 19.86): This provides you with legal protection against unfair and deceptive practices by your debt collectors. Medical providers and collection agencies have to follow strict rules regarding how they contact you and what they can do to collect the debt.
• Washington State Collection Agency Act (RCW 19.16): This regulates collection agencies and provides guidelines for how they can collect debts, including requirements for informing you of your rights.
• Fair Debt Collection Practices Act (FDCPA): This prohibits harassment, threats, and false claims by collection agencies. While the FDCPA is a federal law, Olympia residents must know that it applies to medical debt collection practices.
• RCW 19.86.020: This statute outlines unlawful acts or debt collection practices and helps protect you against these unfair tactics.
• RCW 19.16.250: This statute defines how collection agencies must treat you and outlines the requirements for debt collectors working in the state.

In Olympia, you can find bankruptcy attorneys who are great at helping with medical debt. They can advise you on which course of action to take and explain how Washington’s laws impact your case.

When to Consider Bankruptcy for Medical Bills

Here are a few signs that you may need to consider filing for bankruptcy:

• Unmanageable Debt: If your medical bills, along with other debts, are more than you can reasonably repay, bankruptcy could help.
• Frequent Collection Calls: If medical debt collectors are harassing you, bankruptcy can stop these calls and give you a fresh start.
• Foreclosure or Repossession: If you’re facing the loss of your home or assets due to unpaid medical bills, bankruptcy might help protect you.

FAQs About Medical Bills and Bankruptcy in Thurston County

Why You Need an Olympia Bankruptcy Attorney in Your Corner

If you are struggling with medical bills in Olympia, you don’t have to face the burden alone. Bankruptcy can be an effective way to gain relief, especially when you have the guidance of a knowledgeable Thurston County attorney on your side.

Medical bills are easily discharged in bankruptcy. Medical debt is one of the most common reasons why people have to file bankruptcy. Judges and trustees are well aware of how easy it is for medical debt to drive someone into bankruptcy. Medical debt is classified as “general unsecured debt” which means it is the lowest priority of debt in the bankruptcy process. As with any debt, medical collections stop immediately after you file your case.

Medical debt can be discharged whether you are making payments on an account or you are being garnished for it. If you hire our office, we can take the calls of any medical collectors who are harassing you while you get ready to file your case. Medical debt can be discharged as long as it’s for medical care you received before you filed your case. If you think medical bills are covered by insurance but you end up being liable for them they will still be discharged in a bankruptcy filed after you received the care.

You may wonder if a doctor will continue treating you after you discharge a medical bill to him or her. Most hospitals or big medical offices will continue to treat you even after you discharge a medical debt to them. Some smaller offices may not treat you after you discharge a debt to them. If you want to pay a doctor you may want to wait until after you file. Paying one debt in favor of others could be considered an unfair preference and the bankruptcy trustee may want to collect a payment made to a creditor just before filing your case.

If you have a lot of medical debt in your bankruptcy, the trustee will want to know if you have to right to sue somebody for an injury or accident. If you do, this money is an asset of the bankruptcy estate whether you filed the case or not. The trustee could force you to file a case if it is legitimate. If you are considering bankruptcy and can sue someone for an injury or accident, you should discuss any case you might have with your bankruptcy attorney and your personal injury attorney if you have one.