Our Leading Bankruptcy Attorneys in Denver Weigh In On This Important Question
If you’re struggling with medical debt, you may be looking into the various ways to take care of this debt by searching online.
There is more than enough information out there; but, of course, all the details can be frustrating when you just want a clear answer.
No one who has been challenged by growing debt deserves to be further stressed by too many answers and options, especially when it’s healthcare-related. What you do deserve is clarity, and this is what Wink & Wink, the leading bankruptcy and debt settlement attorneys in Denver, seek to provide.
If you’re wondering which option is best for you – hiring a debt settlement attorney, filing for Chapter 13 bankruptcy, using a debt settlement company, or seeking debt consolidation – we’re weighing in on the pros and cons of each option to help you make an informed decision that will benefit your financial future.
Should You Hire a Debt Settlement Company for Your Medical Debt?
If you are trying to decide whether you should use a debt settlement company, let’s explore what this option means, and if it’s a good choice for you. A debt settlement company is a third party that will claim they can talk to your creditors to help settle your debt for a smaller amount than the total owed.
The debt settlement company will then charge you a certain percentage of either the total amount, or the amount that you’ve settled for, as payment for their assistance in settlement.
Analysis from Our Team of Bankruptcy and Debt Settlement Attorneys in Denver
Debt settlement companies are typically national companies, so they often don’t already have relationships established with local and regional medical services. They are likely to be complete strangers to your creditors.
Further, because debt settlement companies are generally large corporations, their fees can end up being less than ideal, especially if you’re already struggling with debt.
There are many debt settlement scams among the legitimate companies, so you will have to thoroughly research the debt settlement business you decide to work with.
Should You Hire a Debt Consolidation Company for Your Medical Debt?
A debt consolidation company’s job is to take all of your various medical debt and combine it as one new loan. Suppose you owe a hospital, a general practitioner’s office, and an urgent care separate amounts of money. A debt consolidation company will allow you to merge all of that debt together to make it appear more manageable. However, you’ll now have a new creditor and a single monthly payment that you still could default on.
Analysis from Our Team of Bankruptcy and Debt Settlement Attorneys in Denver
Some people who are trying to settle medical debt like the appeal of paying one single creditor, as opposed to managing several different medical creditors. This could have a slight upside for you.
However, if you are already struggling to pay medical debt, you may not be eligible for debt consolidation.
Additionally, if you already can’t afford to pay your creditors, reorganizing your debt does not make your debt easier to pay off. It is likely, then, that your debt problems will continue. The last thing you want is to re-experience the same calamity, only with a new creditor you can’t pay – the debt consolidation company you thought had your solution.
Should You Hire a Debt Settlement Attorney in Denver to Settle Your Medical Debt?
The next option we will explore is hiring a debt settlement attorney to handle a settlement to your benefit. A debt settlement attorney plays the role of negotiator, so that you can reduce your total payment with their expertise and experience. While this option does seem to have some similarities to hiring a debt settlement company, if you turn to our analysis below, you’ll find that the option of hiring an expert attorney comes with several advantages that a debt settlement company cannot provide.
Analysis from Our Team of Denver Bankruptcy and Debt Settlement Attorneys
When you work with a debt settlement attorney to settle your medical debt, having local attorneys who are experienced with getting the best deal possible for clients is an immense benefit for anyone who is struggling with medical debt. Debt settlement attorneys can often secure a better settlement than national companies.
To extend this benefit further, it is always to your advantage to have an attorney you can meet with in person, so that you can have direct communication. Developing a relationship with a legal team will benefit you as you work together on an overall strategy and approach that will get your debt reduced significantly.
When you work with debt settlement attorneys, you are tapping significant legal experience and knowledge that is all focused toward maximizing an excellent end-result for you. This is preferable to working with a large debt settlement company that is often more concerned with their bottom line and “making a sale.”
How Wink & Wink’s Debt Settlement Approach Can Benefit You
Working with debt settlement attorneys can ensure your medical debt is settled efficiently, seamlessly, and to your advantage. We can help you get back on your feet, and even show you how debt settlement can help you begin a journey to a better credit score. Additionally, being able to work with us will immediately help alleviate some of your stress related to these seemingly insurmountable debts. The feeling that a team of experts is on your side is priceless, and we want to provide this for you as your legal partner.
When you work with Wink & Wink’s debt settlement attorneys in Denver, there is potential to settle by offering to pay 50 percent of your overall debt, with the rest forgiven. However, when you elect to work with a debt consolidator, remember that you will still be paying your debt in full, only with a smaller monthly payment. While this may seem beneficial, it is an illusion, because no portion of your debt has actually been forgiven.
Keep in mind that working with a debt settlement attorney also can better enable you to settle lawsuits from your creditors. Because you must already be in default to settle your debt, you are already at risk of being sued.
Additionally, the lawyers at Wink & Wink are well versed in federal and state laws which offer protection from medical bills. For example, the recently enacted Colorado Indigent Care Program requires health care facilities in the state to evaluate a patient’s eligibility for discounted care and limit the amounts charged to indigent patients for emergency and other healthcare services. This law also requires the health care facility to collect amounts charged in monthly installments not to exceed 4% of the patient’s monthly household income for bills from a healthcare facility and not to exceed 2% of the patient’s monthly household income for bills from a healthcare professional – and the law goes on to require the debt be forgiven after 36 months of these payments.
Another Debt Settlement Solution with a High Upside: Bankruptcy
Another option that Wink & Wink can discuss with you and facilitate is filing for either Chapter 13 bankruptcy or Chapter 7 bankruptcy. These bankruptcy options can provide several advantages over debt consolidation or seeking out a national debt settlement company, depending on your situation. During a free consultation with Wink & Wink, we will look at your total debt (not just including medical bills), income and assets and advise you on whether Chapter 13 bankruptcy, Chapter 7 bankruptcy, or settling debt will be the most cost-effective debt relief solution for you.
Medical debt can be discharged in bankruptcy. And bankruptcy is often the best way to manage medical debt if:
- You have medical debt that you are no longer able to pay, perhaps as well as other unsecured debt, such as credit card debt.
- You have not too much income or assets, even if you have a steady income that will allow you to pay a fraction of your debt over a period of time, as opposed to a lump sum payment that can be negotiated with the help of our debt settlement expertise.
How Wink & Wink’s Chapter 13 Bankruptcy, Chapter 7 Bankruptcy or Debt Settlement Strategies Can Benefit You
Wink & Wink’s local attorneys are well versed in all manner of debt relief. They make themselves available to their clients, as opposed to debt consolidation companies or working with a national, faceless debt settlement company. Additionally, Wink & Wink will look at the big picture of your debt including not just medical bills but also credit cards, taxes, and secured debt like auto loans and mortgages. With this information, Wink & Wink can guide you to the most cost-effective debt relief option for you.
If settling your debt is best, Wink & Wink can potentially help you negotiate to pay a fraction of your overall debt, making this a solution that can get your financial future on track, including allowing you to build back your credit score.
Look to Wink & Wink, the Expert Team for Denver Bankruptcy and Debt Settlement
Our legal team has been helping clients achieve excellent, empowering resolutions to their medical debt challenges since 2009. Whether it’s Chapter 7 or Chapter 13 bankruptcy, we have an outstanding track record to help you get out of debt. Additionally, our debt settlement solutions are far more preferable and beneficial than debt consolidation or corporate debt settlement programs.
We know the Colorado legal system, and – more importantly – we know our clients personally, customizing our strategies to their unique needs. If you’re looking to move on from medical debt, and experience the newfound hope and freedom that comes from a solution that will benefit you the most, set up a free consultation with Wink & Wink, your Denver bankruptcy and debt settlement attorneys.