The Shocking Truth About Medical Debt

From the Desk of Attorney Omar Zambrano: Helping Families in Los Angeles and Baldwin Park Overcome Medical Debt

Understanding the Reality of Medical Debt in America

Medical debt is a widespread issue that many people face today, and it's not something to be ashamed of. In fact, it's estimated that Americans owe more than $220 billion in medical debt. This staggering amount has made medical debt one of the leading causes of bankruptcy across the United States. Even those with health insurance can find themselves buried in bills, unable to keep up with the costs of medical treatments.

If you’re struggling with unpaid medical bills, you’re not alone. Let’s break down some important facts and practical steps to help you manage this burden.

Why Is Medical Debt So Common?

• High Costs of Healthcare: Medical expenses continue to rise, making it hard for many families to keep up, even if they have health insurance.
• Lack of Insurance: Around 24.7 million Americans under 65 lack health insurance, leaving them vulnerable to high medical costs.
• Unexpected Illness or Injury: A sudden health crisis can create enormous bills that quickly become unmanageable, especially if it results in time off work or reduced income.

What Happens If You Don’t Pay Your Medical Bills?

Unpaid medical bills can have a significant impact on your financial health:

1. Credit Score Damage: Unpaid bills can end up on your credit report, lowering your score and making it harder to access credit or loans in the future.
2. Debt Collection: Healthcare providers may turn over your debt to collection agencies, leading to persistent calls, letters, or even legal action.
3. Possible Bankruptcy: For many, overwhelming medical bills can lead to the difficult decision to file for bankruptcy.

Steps to Take When You Can’t Pay Your Medical Bills

1. Check for Errors on Your Medical Bills

It’s common for medical bills to contain errors, so make sure you review them carefully:

• Compare Your Bills with Your Insurance Statements: Make sure the services listed match up with the treatments you received.
• Request an Itemized Bill: This will give you a detailed breakdown of the charges, allowing you to spot any mistakes, such as duplicate charges or treatments you didn’t receive.

2. Negotiate Your Medical Bills

Believe it or not, you can negotiate your medical bills to reduce what you owe:

• Contact the Billing Department: Explain your financial situation and ask if they can lower your bill or provide a discount.
• Ask About Financial Assistance: Many hospitals offer assistance programs for those with limited income or who are experiencing financial hardship.

3. Set Up a Payment Plan

If you can’t pay the full amount right away, many providers are willing to set up a payment plan. This allows you to pay off your bill in smaller, manageable amounts over time.

• Zero-Interest Payment Plans: Request a zero-interest plan to avoid accumulating additional costs.
• Get It in Writing: Make sure any agreement you reach is documented to protect yourself from future misunderstandings.

Special Considerations and Legal Protections for Medical Debt

Several recent changes provide some relief for those struggling with medical debt:

• Credit Reporting Changes: As of 2023, medical debts under $500 don’t appear on credit reports, and repaid medical debts are removed, providing some relief to those with outstanding bills.
• The No Surprises Act: Effective in 2022, this law protects you from unexpected out-of-network charges, particularly in emergency situations.

How Chapter 7 Bankruptcy Can Help You Start Fresh

If you find yourself overwhelmed by medical debt and unable to find a way out, Chapter 7 bankruptcy might be the lifeline you need to start fresh. Here’s how Chapter 7 can make a difference:

• Complete Discharge of Medical Debt: Chapter 7 bankruptcy can eliminate unsecured debts, including medical bills, giving you a clean slate. This means you’re no longer legally obligated to pay the debts that are discharged.
• Immediate Relief from Collection Efforts: As soon as you file for Chapter 7 bankruptcy, an automatic stay goes into effect, which stops all collection activities, including calls, letters, wage garnishments, and lawsuits related to your medical debt.
• Quick Resolution: The Chapter 7 process typically takes around 4 to 6 months from start to finish, allowing you to regain financial control relatively quickly.

Need help exploring this option? ?? Call me at 626-338-5505 or visit OmarZambrano.com to schedule a free consultation and discuss how Chapter 7 bankruptcy could provide the fresh start you need.

FAQs About Medical Debt

Q1: Does Medical Debt Affect My Credit Score?

Yes, unpaid medical debt can impact your credit score if it’s sent to collections. But with recent changes, you have more time to pay before it’s reported.

Q2: Can Medical Debt Be Forgiven?

It’s possible through debt settlement or hardship programs, but it’s not guaranteed. Each case is unique, and it’s worth exploring all options.

Q3: What Should I Do if I Can’t Pay My Medical Bills?

Start by reviewing your bills for errors, negotiating with your provider, and considering a payment plan. If you’re still struggling, seek professional help.

The Bottom Line

Medical debt doesn’t have to control your life. By understanding your rights, exploring all options, and taking proactive steps, you can manage your medical debt and move towards financial freedom.

If you're in Los Angeles or Baldwin Park and need guidance on handling overwhelming medical bills, I'm here to help. Whether it's negotiating bills or considering bankruptcy, you don't have to face this challenge alone.

?? Call me today at 626-338-5505

?? Visit OmarZambrano.com

?? WhatsApp: +1-626-550-7071 – Text us now

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