
Overcome Medical Debt with Bankruptcy in Killeen & Waco, Texas
Bankruptcy as a Solution to Medical Debt & for Individuals with Disabilities in Killeen & Waco, Texas
Overwhelming medical bills can be a serious financial burden. In fact, medical debt is one of the most common reasons that people file for bankruptcy. A study published in the American Journal of Public Health found that 66.5 percent of all bankruptcy cases were the result of medical issues, either because of how expensive treatment was or because the illness caused the patient to miss a significant period of work.
If you're struggling with medical debt, filing for bankruptcy may be the best way for you to regain your financial footing. Erin Baker Shank and her Killeen & Waco bankruptcy law firm can help you evaluate your options and find the best option forward.
Bankruptcy cases are the only focus at Erin's firm. She has four decades of experience helping Texans through the bankruptcy process. Get a free initial consultation by calling one of her offices or visiting the contact page today.
Understanding Bankruptcy for Medical Bills in Texas
There is not a separate form of relief called medical bankruptcy. However, you may be able to have your medical debts discharged in either a Chapter 7 or Chapter 13 bankruptcy filing. You cannot limit a bankruptcy filing to only deal with your medical debts. When you file for bankruptcy, all your debts must be included in your bankruptcy documents filed in your case.
Qualifying for Chapter 7 Bankruptcy in Killeen & Waco
Before you can have your medical debts wiped out in bankruptcy, you'll have to see if you qualify. To be eligible for Chapter 7 bankruptcy and have your medical debts discharged, you will need to qualify under the bankruptcy means test.
The means test involves looking at your average income for the past six months and determining whether or not your income level is less than the median income for other Texas households of similar sizes. If your income is less than the median income for a similarly sized household, you are eligible to file for Chapter 7 bankruptcy. If your income is above the median level, you may still be qualified to file a Chapter 7 case. You may consider a Chapter 13 filing in this fact situation. However, due to the onerous requirements of Chapter 13 (wage garnishment, income tax refund garnishment, employer notification of the bankruptcy filing) Erin considers Chapter 13 as a last resort. She has non-bankruptcy solutions for individuals who don't qualify for Chapter 7 bankruptcy relief. Bankruptcy attorney Erin Shank, with virtual offices in Killeen and Waco, can help you determine the best way to address our financial challenges.
Protecting Disability Benefits During Bankruptcy
One key area of concern when it comes to bankruptcy and medical debt is how filing for bankruptcy can affect your disability benefits. Fortunately, many disability benefits are protected from your creditors through our strong exemptions laws that are applicable in a bankruptcy case. Social Security benefits and VA Disability payments are exempt from the reach of creditors under federal and Texas law.
What Sets Us Apart
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Practice Exclusively Dedicated to Bankruptcy Law
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Affordable & Flexible Payment Plans
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Over 40 years of Bankruptcy Experience
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100% Virtual – Safe & Convenient
Listen to Erin Answer Your Questions!
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What Our Clients Say
Real Stories from People We've Helped Through Financial Hardship
At Erin Baker Shank, P.C., your satisfaction is our priority! See for yourself what our clients have to say about working with us.
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I'm very grateful to this firm. I had doubts of being able to get a fresh start. They assured me that there is a way. It may have took a little longer due to my situation but they prevailed.Ed B.
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Ms. Shank and Sharlyn were absolutely fantastic! Very helpful, and knowledgeable and answered any questions or concerns we had. They truly pulled off a miracle. If you’re thinking of filing for bankruptcy, Ms. Shank is the woman for the job.Monique K.
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“The staff and Erin were great. I would recommend Erin to anyone. Compared to our other law firm she saved us 10's of thousands of dollars on our bankruptcy Erin is the best we don't think we could have done it without her.”Previous Client
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Making the decision to file bankruptcy is not only one of the hardest decisions to make but with it comes a certain degree of feeling shame. Erin and Melissa averted all of those feelings for me with kindness and professionalism. They talked me through every step and made the entire process as easy and stress free as possible.Kris L.

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