Oklahoma Bankruptcy HelpWhat is Medical Bankruptcy in Oklahoma?
Exorbitant healthcare costs, especially for the uninsured, have literally driven some Tulsa, Oklahoma residents into poverty. While the Affordable Care Act may help some people get insured for the first time in years, it is not a cure-all especially for past medical bills.
While excessive healthcare expenses are one of the most common reasons people cite when filing personal bankruptcy, at this time there is no such thing as a cut-and-dried medical bankruptcy in Oklahoma.
FAQ: Medical Bankruptcy in Oklahoma
Filing any type of bankruptcy case in Tulsa requires disclosure of all debts, including credit cards and home mortgage loans. The good news is medical bills can be totally eliminated in Chapter 7 and reduced or even eradicated in a Chapter 13 bankruptcy. However, a debtor cannot show favoritism and pay the credit cards while eliminating the medical bills. Thus, bankruptcy generally includes all bills.
In some cases a judge will allow a debtor to “reaffirm” an account with a lender, but the circumstances generally must be compelling. Generally, reaffirmation is best reserved for loans secured by collateral such as a house or an automobile.
Chapter 7 vs. Chapter 13
Health problems are another common reason people ponder whether to file for medical bankruptcy in Oklahoma.
Chapter 7, which allows debtors to forfeit their interest in assets such as real estate equity in exchange for nearly complete debt relief, is probably the best bet for someone unemployed due to health issues.
Chapter 13, a partial debt repayment plan supervised by a Tulsa bankruptcy judge, might be a viable option for someone who is working but hit a spell of bad luck.
What About Student Loans?
In most cases, health problems are not enough to eliminate or reduce government-issued student loans. Only in rare cases of severe and permanent disability will a Tulsa bankruptcy judge purge a debtor’s obligation to repay government-issued student loans.
College loans issued through a private lender are an entirely different matter and can usually be eliminated through bankruptcy just like credit card debts.
Free Bankruptcy Planning: Tulsa Bankruptcy Lawyer
To get the best possible outcome in your bankruptcy case, you will need to set expectations for yourself and also understand your attorney’s expectations of you.
If you’re ready to file, contact a Tulsa bankruptcy attorney at the Freedom Financial Bankruptcy Lawyers of Tulsa as soon as possible.
To receive your free initial bankruptcy analysis, call the Freedom Financial Bankruptcy Lawyers of Tulsa today at (918) 786-9600.
