In Need of Medical Debt Relief? Call the Top-Rated Philadelphia Lawyers at Cibik Law
Are you in collections for medical debt? Are you worried about how you will pay your bills going forward? If so, you can obtain the help you need from the Law Offices of Cibik Law. If you are one of the many people being harassed by medical debt collectors, you have rights. Collection agencies that collect medical debt must abide by the same standards for collection practices as any other type of debt collection agency. We will help you protect yourself from medical debt collectors while exploring all available options for your financial future, such as filing for bankruptcy.
The Law Offices of Cibik Law have successfully helped many clients throughout Philadelphia, Bucks County, Montgomery County, and Delaware County stop abuse from medical debt collectors. If a collection agency is abusing you or you have been victimized by confusing third-party billing, one of our medical debt collection lawyers can provide you with the aggressive legal representation you need. We will stop creditor abuse and harassment and help you look into medical debt forgiveness or bankruptcy options. If you need assistance with medical debt, you have nothing to lose by discussing your case with one of our experienced lawyers. We offer our clients a free initial consultation.
Medical debt is any debt you have from things like a hospital, a doctor, or an ambulance ride. If you feel overwhelmed by your current medical debt, we can help. Contact us today for a free consultation!
Does Filing for Bankruptcy Clear Medical Debt?
If you are dealing with extensive medical debt, you may be wondering if it is worth looking into filing for bankruptcy. You can wipe out, or discharge, medical debt through bankruptcy. Unpaid medical bills are one of the main reasons people seek relief through bankruptcy. There are several factors you should consider before you file for bankruptcy, however. Will another financial crisis happen after you file for bankruptcy? Keep in mind that you are only entitled to so many debt discharges through bankruptcy within a specific time frame.
For example, after a Chapter 7 bankruptcy, you need to wait eight years before you obtain another debt discharge. If you anticipate having more medical bills after your first bankruptcy, it may be worth discussing other options and waiting to file for bankruptcy. You may be able to apply for medical payment assistance, or your lawyer may be able to negotiate a settlement with the debt collector, allowing you to pay a lump sum instead of continuing to pay high payments over time. The best thing you can do is discuss your case with an experienced bankruptcy lawyer.
Ways to Get Out of Medical Debt
As insurance premiums continue to rise along with the cost of medical care, many Americans are grappling with extensive medical debt. One surgery, accident, illness, or pregnancy can easily reach five figures in medical costs, even when you have health insurance. You may have to deal with lingering medical debt. There are several steps you can take to try to get out of medical debt, including the following:
* Do not ignore your medical bills. Doing so is one of the worst things you can do. If you ignore them, your bills will be sent to a collection agency and you will be subject to annoying phone calls. Your credit score will also take a hit.
* Make sure all of the charges are accurate. Medical billing is confusing, and you could have been charged for treatment for services you never received. For example, even if you checked out in the morning, you may have been charged for a full day in a room at the hospital.
* Do not use your credit cards to pay off medical bills, which is a common temptation. In most cases, credit card interest rates are higher than those of medical bills. If you work with an experienced lawyer, your lawyer will have more room to negotiate payment for medical bills than with a credit card company.
* Work with your lawyer to negotiate an interest-free payment plan with the hospital or doctor’s office. Your lawyer may also be able to ask for a prompt pay discount, meaning if you pay more in advance, they will take a discount off of the total.
* You may be able to apply for a loan as a last resort or apply for other types of financial assistance. Suppose your bills have already gone to a collection agency. In that case, your lawyer can aggressively negotiate with them and make sure they follow federal guidelines when they discuss your bills with you.
* Filing for bankruptcy is frequently a helpful way to deal with significant medical debt. There are several different types of bankruptcy, and one of our experienced players can help you decide which one is right.
Frequently Asked Questions About Medical Debt in Pennsylvania
Can medical debt collectors garnish my wages in Pennsylvania?
Yes, if a medical debt collector obtains a court judgment against you in Pennsylvania, they can garnish your wages. Under Pennsylvania law, wage garnishment for consumer debts requires a court order, and creditors must follow specific procedures through the Philadelphia Court of Common Pleas or your local county court. However, certain income sources are exempt from garnishment, including Social Security benefits, disability payments, unemployment compensation, and veterans benefits. At Cibik Law, we help clients understand their rights and explore options like bankruptcy, which triggers an automatic stay that immediately stops all garnishment activity.
How long can medical debt collectors pursue me in Pennsylvania?
The statute of limitations for medical debt in Pennsylvania is four years from the date of the last payment or acknowledgment of the debt. After this period, creditors cannot file a lawsuit to collect the debt, although they may still attempt to contact you. It is important to be cautious about making any partial payments on old medical debt, as this can restart the statute of limitations clock. If you are being contacted about medical debt that may be past the statute of limitations, consult with a debt relief attorney at Cibik Law before taking any action or making any payments.
Will medical debt affect my credit score?
Medical debt can significantly impact your credit score, but recent changes have provided some relief. As of 2023, the three major credit bureaus no longer report medical debts under $500, and paid medical collections are removed from credit reports. However, larger unpaid medical debts can still appear on your credit report and lower your score by 100 points or more. If medical debt is damaging your credit and preventing you from obtaining housing, auto loans, or employment, filing for Chapter 7 bankruptcy can discharge the debt entirely and give you a path to rebuilding your credit within 12 to 24 months.
Can I negotiate my medical bills directly with the hospital?
Yes, many hospitals and healthcare providers in the Philadelphia area are willing to negotiate medical bills, especially if you can demonstrate financial hardship. Most hospitals have financial assistance programs or charity care policies that can reduce or eliminate bills for qualifying patients. You can request an itemized bill to check for errors, ask about payment plans, or negotiate a lump-sum settlement for less than the full amount. If direct negotiation is unsuccessful or your medical debt has already gone to collections, an attorney at Cibik Law can step in to negotiate on your behalf or recommend the most effective legal strategy for eliminating the debt.
What happens to medical debt when I file Chapter 7 bankruptcy?
Medical debt is classified as unsecured, nonpriority debt under federal bankruptcy law, which means it is fully dischargeable in a Chapter 7 bankruptcy filing. When you file Chapter 7, all qualifying medical debts are eliminated regardless of the amount owed. The automatic stay that takes effect immediately upon filing stops all collection calls, lawsuits, and garnishment attempts related to medical debt. For many Philadelphia-area residents dealing with tens of thousands of dollars in medical bills, Chapter 7 provides the fastest and most complete form of relief available. Cibik Law has helped thousands of clients discharge medical debt through bankruptcy since 1987.
Is medical debt treated differently in bankruptcy than credit card debt?
In a Chapter 7 bankruptcy, medical debt and credit card debt are both classified as general unsecured claims and are treated identically. Both are fully dischargeable. In a Chapter 13 bankruptcy, medical debts are included in your repayment plan alongside other unsecured debts, and any remaining balance after completing the three-to-five-year plan is discharged. One practical advantage of medical debt in bankruptcy is that it does not carry the same stigma as other types of debt, and bankruptcy courts recognize that medical emergencies are often unavoidable circumstances beyond a person’s control.
Philadelphia Medical Debt Relief: Areas We Serve
Cibik Law provides medical debt relief services from our offices in Center City Philadelphia and King of Prussia. We represent clients facing medical debt throughout the greater Philadelphia region including Northeast Philadelphia, Bala Cynwyd, Norristown, Jenkintown, Abington, Cheltenham, Lansdale, and communities across Montgomery County, Bucks County, Delaware County, and Chester County. If medical bills are causing you financial stress, call 215-774-3916 to schedule a free consultation with a board-certified bankruptcy specialist who can help you understand all of your options for medical debt relief in Pennsylvania.
