Albuquerque Medical Bill Debt Lawyer

Albuquerque Medical Bill Debt Attorney

When an accident or health emergency transforms into insurmountable medical debt, figuring out how to escape this financial burden can be daunting. Even with insurance, the cost of medical services in Albuquerque may not be fully covered by a provider. If you are tired of the mental burden of medical debt, speaking with an Albuquerque medical bill debt lawyer can bring more clarity about your options.

At Gilchrist Law Firm, P.C., we have helped clients throughout New Mexico for the past two decades with their bankruptcy and estate planning needs. We believe that every hard-working New Mexico resident deserves an opportunity for financial peace. Our attorneys listen to your needs and provide individualized support to each client.

Options Available If You Have Medical Bill Debt in New Mexico

Whether you incurred high medical debt due to insufficient insurance or having no insurance at all following a job loss or a long period of unemployment, for example, you should not be forced to choose between covering your basic needs and paying off medical debt.

Across the U.S., adults are struggling with medical debt. According to a 2022 Consumer Financial Protection Bureau report, Americans held over $88 billion in medical debt. 17.94% of New Mexico’s residents were responsible for $881 million of that amount.

When pursuing relief through debt consolidation or payment plans with a service provider is not enough, those living in New Mexico who owe large medical debt may consider bankruptcy as an option for relief.

Because medical debt is unsecured debt, meaning that it is not backed by collateral, it is eligible for discharge through bankruptcy.

There are two types of bankruptcy that can help you get rid of your medical debt:

Chapter 7 Bankruptcy

Known as liquidation and often referred to as fresh start bankruptcy, Chapter 7 bankruptcy allows a petitioner to have qualifying unsecured debt, including medical debt, wiped out. Approval for Chapter 7 bankruptcy is contingent upon passing a means-based test, which looks at your disposable income and determines whether it is sufficient to pay a portion of your debt after total monthly income and expenses are considered.

If approved, discharge of debt typically occurs four months after a Chapter 7 bankruptcy petition is filed.

Chapter 13

Chapter 13 bankruptcy, or the wage earner’s plan, may be a more suitable option for those in Albuquerque who hold large medical bill debt but earn a high income and do not qualify for Chapter 7 bankruptcy.

Under Chapter 13 bankruptcy, you can negotiate a repayment plan with creditors who hold your medical debt. This repayment plan can be entered into for three years or up to five years, depending on the income of the applicant.

Though both plans offer various benefits, filing for either Chapter 7 or Chapter 13 bankruptcy can put a pause on creditors pursuing debt collection, which can help you avoid lawsuits and protect your home from foreclosure and other assets from being seized.

Benefits of Working With a Trusted Albuquerque Medical Bill Debt Lawyer

Filing a bankruptcy application is not a simple process, and pursuing it on your own can lead to failure if you do not know how to handle objections from creditors.

Working with a trusted Albuquerque medical bill debt lawyer who has a track record of success in obtaining positive results in clients’ bankruptcy applications can save you time, money, and headaches throughout the process

Gilchrist Law Firm, P.C., helps guide you throughout each stage of the bankruptcy process:

• We listen to you and offer tailored solutions to handle your medical debt.
• We explain the benefits and drawbacks of filing for bankruptcy in your case.
• We help you complete the bankruptcy application and gather the required documents.
• We inform you about the next steps and how to prepare.
• We assist you in challenging objections from creditors during a 341 meeting.

Between April 1, 2024, and March 31, 2025, the U.S. District Court of New Mexico received 1,270 Chapter 7 and 200 Chapter 13 bankruptcy petitions. Without the right legal support, you risk being just another case number. Let Gilchrist Law Firm, P.C., be your advocate and fight for your interests.

FAQs

Q: What Happens if You Don’t Pay Medical Bills in New Mexico?

A: If you do not pay medical bills in New Mexico, medical providers may sell your debt to a collections agency or pursue a claim for the total amount owed through court. If a claim is filed against you and you lose, your wages may be garnished, or you may lose your property.

Q: Is There Debt Forgiveness for Medical Bills?

A: There is no overarching debt forgiveness for medical bills in New Mexico. However, you may be able to request financial assistance from a medical provider or ask about a repayment plan. You may also be able to secure financial support from a local organization or a charity to cover portions of your debt.

Q: What Type of Lawyer Helps With Medical Bills?

A: If you have high medical debt, you can work with a bankruptcy lawyer who can assist you in petitioning for Chapter 7 or Chapter 13 bankruptcy. If a medical provider or a debt collection agency has filed a claim against you in a New Mexico Court, filing for bankruptcy can also put a pause on pending legal proceedings.

Q: What Is the New Law Removing Medical Debt?

A: In January 2025, the Consumer Financial Protection Bureau (CFPB) issued a final ruling regarding the use of medical information by lenders. Lenders are no longer able to consider information about medical devices and require them to serve as collateral for debt owed. The new law also bans consumer reporting agencies from including information about a person’s medical debt in their credit reports in most cases.

Albuquerque Medical Bill Debt Lawyer | Law Firm

If you are tired of generic recommendations when it comes to medical bill debt and are looking for results, it is time that you contact Gilchrist Law Firm, P.C. Our seasoned bankruptcy attorneys are ready to support you in all stages of the bankruptcy process. We answer all your questions and concerns in a timely manner. Schedule a consultation to discuss your medical bill debt payment options.