As an undocumented immigrant, can Chapter 7 clear medical debt?
As the past several years have shown, illness can strike anyone in Virginia and across the United States without warning and leave them with massive medical expenses they are unable to pay. This can be even more worrisome if the person is an undocumented immigrant.
There is a constant fear that they will be found out and deported. This is especially problematic given the attention immigration is getting amid attempts to address it. People who are trying to find ways to eliminate their medical debt should be aware of how Chapter 7 bankruptcy can help them. This is true even, for undocumented immigrants.
Am I able to file for Chapter 7 bankruptcy regardless of my immigration status?
According to the law, there is no stipulation that a person needs to be a citizen of the United States or be in the country legally to file for Chapter 7 bankruptcy. Still, they must have a Social Security number or an Individual Taxpayer Identification Number (ITIN).
Medical debt is an example of unsecured debt. Credit cards are another example. These bills can be cleared through a Chapter 7 liquidation. People need to be aware that they will lose certain properties as part of the process. If they own a home, that could be part of the liquidation to repay creditors. The same holds true for newer automobiles and items of value.
Many people who file for Chapter 7 do not surrender anything because they do not own anything of value. The objective for individual debtors is to give them a chance to restart their financial lives. Despite that, it is wise to understand that there are basic requirements that must be met. That includes meeting the means test based on their monthly income being below a specific level. If the person earns too much or wants to retain property, they will need to file Chapter 13.
Undocumented immigrants in financial trouble can consider Chapter 7
Since immigrants often work in jobs where they were indispensable during the recent health crisis, they were vulnerable to becoming ill due to their proximity to other people and inability to work from home. They can also suffer injuries from working in physical labor and face medical expenses because of that.
Frequently, they do not have health insurance coverage to counteract any expenses they might have. Chapter 7 bankruptcy is possible for undocumented immigrants. Having help from professionals who understand Chapter 7 bankruptcy and immigration law can be beneficial to getting rid of hefty debt.