Health Rights and Legal Battles: Negin Behazin vs. Dignity Health

Break the Chains of Debt by Filing for Bankruptcy
Debt can be a heavy burden to bear, and it can feel like there is no end in sight. However, filing for bankruptcy may be a viable solution to help break the chains of debt and start fresh.
Bankruptcy is a legal process that allows individuals and businesses to eliminate or repay some or all of their debts under the protection of the bankruptcy court. There are two main types of consumer bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcies, also known as a “liquidation” bankruptcy, allows individuals to discharge (eliminate) certain types of unsecured debt, such as credit card debt, medical bills, and personal loans. To qualify for Chapter 7 bankruptcy, individuals must pass a means test, which compares their income to the state median income. If their income is below the state median, they will typically be eligible to file for Chapter 7 bankruptcy.
Chapter 13 bankruptcies, also known as “reorganization” bankruptcies, allow individuals to repay some or all of their debts over three to five years. This type of bankruptcy is typically used by individuals who do not qualify for Chapter 7 bankruptcy and have a regular income.
Filing for bankruptcy can have a significant impact on an individual’s credit score, but it can also provide a fresh start and a chance to rebuild credit over time. It is important to note that certain types of debt, such as student loans and taxes, are generally not dischargeable in bankruptcies.
If you are considering filing for bankruptcy, it is important to speak with a bankruptcy attorney to discuss your options and understand the process. An attorney can help you determine which type of bankruptcy is right for you and guide you through the process.
Another important point to consider is that filing for bankruptcy can stop collection actions, such as wage garnishments, foreclosure, and repossession, as soon as the bankruptcy case is filed. This can provide immediate relief from creditors and financial stress. Additionally, in a Chapter 13 bankruptcy, individuals can use the bankruptcy process to catch up on delinquent payments for secured debts, such as mortgages and car loans, and keep their property.
It’s also worth noting that there are different types of bankruptcy for businesses as well, namely Chapter 7 and Chapter 11. Chapter 7 is similar to the consumer liquidation process, where a business’s assets are liquidated to repay creditors. Chapter 11 allows the business to continue operating while they reorganize its debt and create a plan to repay creditors over time.
Another important aspect to consider is that bankruptcy laws and regulations may vary from state to state, so it’s crucial to consult with a local attorney who is familiar with the laws in your state.
Finally, it’s also worth considering alternatives to bankruptcy, such as credit counseling, debt settlement, or debt consolidation, before deciding to file for bankruptcy. An attorney can also help you explore these options and help you make an informed decision.
In conclusion, filing for bankruptcy can be a powerful tool to help individuals break the chains of debt and start fresh. While it can harm credit scores, it can also provide a chance to rebuild credit over time. It is important to speak with a bankruptcy attorney to understand the process and determine if bankruptcy is the right option for you.