The COVID-19 pandemic has caused a lot of people to be unable to pay their bills on time, particularly people who have been hospitalized and intubated, yet were lucky enough to survive. Some of these patients are experiencing long-lasting adverse health complications due to their SARS-CoV-2 infection, such as acute liver injury or acute cardiac injury, which leaves them unable to be gainfully employed for more than a year and, therefore, eligible for disability from the Social Security Administration.
If you are someone who has had your health wrecked by COVID-19 and you're unable to pay your creditors, you may be wondering what your options are. Here's what you need to consider.
File Bankruptcy Instead of Touching Your Retirement Savings
Some people consider bankruptcy as the very last resort and they cash out their retirement savings to pay their creditors while they figure out what to do for the long term. Don't do this. Your retirement savings should be the very last resort, not bankruptcy. File for a Chapter 7 bankruptcy so you can have the credit card bills and other debt discharged completely. Since you no longer have an income, you likely wouldn't be considered a candidate for Chapter 13, which involves a repayment plan.
Social Security Benefits Are Protected From Bankruptcy
If you've applied for disability benefits from the Social Security Administration, the monthly payments you would be given would not be considered as income and are protected from bankruptcy garnishment. Therefore, whether you've already been awarded disability or expect to be awarded it in the future, you don't have to report the income to the bankruptcy court. However, be sure to have this clarified through a bankruptcy law office in case there are any state laws that require you to report it.
Discharge Medical Debt In Chapter 7 Bankruptcy
If you've accumulated a substantial amount of medical debt, you can discharge it in a Chapter 7 bankruptcy. It will be very important for you to make sure all the medical bills you've accumulated are covered in the Chapter 7 bankruptcy. The law office can help you contact the various hospital groups and doctor's offices that have billed you, and provide you with a document to give them requesting information regarding the status of your accounts and how much you owe so there are no surprise billings in the future.
For more information about Chapter 7 bankruptcy, contact a law office in your area.Share
30 August 2021
Hello, my name is Neil Gamford. Welcome to my site about bankruptcy proceedings. After my divorce, I was left near penniless and without a place to stay. I was paying all of my income to alimony and my remaining debts. Although I had a solid payment plan in place, it was getting difficult to cover my financial obligations without a home. Luckily, I met with a bankruptcy attorney, who helped me find a way to discharge my debts and start over. I hope to share the information I learned throughout that process with you through this site. Please feel free to visit anytime.