Medical Bills

Medical bills are a growing concern for many Wenatchee, Washington, residents. Whether you’re buried in medical debt due to an unexpected hospital visit, surgery, or ongoing medical treatments, the financial strain can become unbearable. A bankruptcy attorney might be able to help you regain some financial stability if you find yourself dealing with a significant amount of medical debt in Wenatchee.

Medical bills are a leading cause of financial distress for Chelan County and throughout Washington. Even if you have medical insurance, the out-of-pocket costs, including the deductibles, copays, and uncovered treatments, can add up quickly. You might find yourself having to choose between paying your medical bills and covering your other essential expenses like your housing and food.

If you’re in Wenatchee and facing medical debt, you aren’t alone. Bankruptcy may be a solution to help you eliminate or manage overwhelming healthcare-related expenses.

Bankruptcy can provide you with some much-needed relief in a few ways.

• Discharge Medical Debt: In many cases, your medical bills are considered unsecured debt, which can be discharged in a bankruptcy.
• Stop Collection Calls: Filing for bankruptcy triggers an automatic stay (11 U.S. Code § 362), which immediately prevents your creditors from harassing you.
• Prevent Wage Garnishment: Filing for bankruptcy can stop wage garnishment if a hospital or collection agency obtains a judgment against you (RCW 6.27).
• Create a Repayment Plan: If you don’t qualify for Chapter 7, Chapter 13 bankruptcy allows you to restructure your debts so you can make more manageable monthly payments.

You have two main bankruptcy options in Wenatchee when you’re dealing with medical bills.

A common choice for those who qualify, Chapter 7 can eliminate your medical debt, so you can have a fresh start.

• Best if you have low income and few assets
• Discharges most of your unsecured debts, including medical bills
• Requires that you pass the Washington Means Test to qualify
• Typically completed in 3 to 6 months

If you don’t qualify for Chapter 7, Chapter 13 might be an option. This bankruptcy type allows you to consolidate your debt into a manageable repayment plan over three to five years.

• Suitable for those with a steady income
• Allows you to keep your assets while repaying some of your debt over 3-5 years
• Can help you manage other debts, like your mortgage and car loans, along with medical bills
• May allow partial discharge of your remaining medical debt after you complete the repayment plan

Your Wenatchee bankruptcy attorney can help determine which option suits your financial situation in Chelan County.

Bankruptcy in Wenatchee follows both state and federal regulations. Some key aspects to consider include:

• Washington State Homestead Exemption (RCW 6.13.030): This exemption protects up to $125,000 of equity in your primary residence from creditors.
• Personal Property Exemptions (RCW 6.15.010): This protects your essential personal assets, including household items, vehicles (up to $3,250 equity per person), and retirement accounts.
• Wage Exemption (RCW 6.27.150): This limits the amount of wages that creditors can garnish.
• Washington Wildcard Exemption: This allows for an additional exemption of up to $3,000 for any property of your choice if you are not using the homestead exemption.

Understanding these exemptions can help you protect your assets while you seek financial relief through bankruptcy. A Wenatchee bankruptcy attorney can guide you through the process to make sure you maximize your exemptions and safeguard your essential property.

Because filing for bankruptcy involves several steps, working with a skilled bankruptcy attorney can make the process easier.

• Consult a Bankruptcy Attorney: Discuss your situation and explore your options.
• Complete Credit Counseling: This is a required step before you can file.
• File Bankruptcy Petition: Your attorney can prepare and file the paperwork.
• Automatic Stay Goes Into Effect: This stops creditors from collecting on your medical bills.
• Attend the 341 Meeting: This is a brief meeting with creditors and a bankruptcy trustee.
• Debt Discharge: This is done based on the bankruptcy type you file.

If you aren’t ready to file for bankruptcy, there are other options to consider.

• Negotiate With Your Healthcare Providers: Some hospitals and clinics offer financial assistance programs or payment plans.
• Debt Settlement: You can work with an attorney or a debt settlement company that may be able to help you reduce your medical debt.
• Government Assistance: Medicaid and charity programs in Washington can sometimes provide financial relief for those who qualify.
• Use a Debt Management Plan: A DMP through a nonprofit credit counseling agency can help negotiate your payments with creditors.

While these alternatives can certainly help, they don’t often provide the full relief that bankruptcy can offer when dealing with mountains of medical debt.

If your medical bills are weighing you down, bankruptcy can be just what you need to move forward. Your bankruptcy attorney in Wenatchee can help you navigate the process and ensure you get the fresh start you deserve. Don’t wait and don’t do it alone. Reach out today and take the first step toward financial relief.