Generally, once a person knows that bankruptcy is their best option, the bankruptcy filing should be done as quickly as possible.
Delay can result in bad consequences such as being sued by a creditor and having your pay check garnished. Not to mention the increased stress and other emotional consequences that go hand in hand with financial troubles.
However, there are some circumstances that cause me to recommend a client to temporarily delay filing bankruptcy. One of those circumstances is future medical treatment.
If you’re thinking of filing bankruptcy and you know that you will be receiving medical treatment in the near future, you should consider not filing your bankruptcy case until after your medical treatment is finished. This is because bankruptcy only wipes out bills for medical treatment you received before you file bankruptcy – not after.
My advice here assumes that your upcoming medical treatment will result in doctor and/or hospital bills that you cannot pay.
Even if you have health insurance that will cover the majority of your upcoming medical treatment, you likely will be personally responsible for co-pays and deductibles which can add up to a considerable amount.
And complications can cause the cost of your medical treatment to skyrocket.
For example, if you or your spouse is pregnant, a premature delivery or emergency C-section can cause medical expenses to surge out-of-sight. That’s why all things being equal, it would be wise to consider waiting to file bankruptcy until after the baby is born.
And unexpected complications that increase medical costs aren’t limited to pregnancy. Unfortunately, they can surprise you in just about any situation involving medical treatment from routine check-ups to elective surgery.
So if you’re seriously considering filing bankruptcy and you have upcoming medical treatment, think about delaying the filing of your bankruptcy.
If you’re struggling with debt problems and would like to know more about the different types of bankruptcy and which would be best for your specific situation, contact Dan Nunley today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
{ 3 comments… read them below or add one }
Great advice. This is an important consideration.
If you have pending litigation there are also concerns which should be discussed with your attorney. If you say, have a pending personal injury case, a bankruptcy filing could impact the way the case is handled as well as any recovery. I am not a bankrupcy attorney and this is a matter better discussed with one.
Chuck,
You are right about the intersection of bankruptcy and personal injury settlements. I will be doing a post on that topic in the near future. For now let me just say that pending personal injury claims must be disclosed by the debtor in his/her bankruptcy schedules. And here in Oklahoma, a debtor can exempt or protect a personal injury settlement or award up to $50,000.00 not including punitive damages.