Utah Families Face Bankruptcy due to Bills Related to Autism

Having a child with autism can be both emotionally and fiscally taxing on the entire family. This is particularly true for many families in Utah that are dealing with the piles of bills stemming from autism-related care and treatment. According to ABC News, many families who have autistic children have discovered that their insurance companies do not cover the costs associated with diagnosing and treating autism.One family detailed how they have gone through their entire savings and have filed bankruptcy twice because of the ever-mounting medical debt, and a father of two autistic children mentioned how it was a struggle for his family as well, noting that they have had to pay approximately $10,000 per child out of their own pockets. Many other families are in similar situations, and they are often forced to make decisions regarding their financial futures under very stressful circumstances. Filing for bankruptcy protection is often a consideration for individuals in these types of cases, but choosing what type of bankruptcy to file can be a bit puzzling.

Selecting The Appropriate Chapter Of Bankruptcy

Many individuals who are contemplating filing for bankruptcy protection often wonder which chapter will best suit their particular needs. A Chapter 7 bankruptcy filing generally eliminates most of an individual's unsecured debts. It's often referred to as a "fresh start" bankruptcy, and it is a popular choice for those seeking to restart their financial lives.

In the alternative, individuals who want to gain control of their credit card debt or those who are facing foreclosures, repossessions or other types of collection activities might consider filing for Chapter 13 protection.

The Difference Between Chapter 7 And Chapter 13

There are several differences between Chapter 7 and Chapter 13 filings, particularly in the following areas:

  • Child support and alimony
  • Student loan debt
  • Mortgage
  • Automobile loans

For example, with regard to student loan debt, child support and alimony, if an individual files a Chapter 7 bankruptcy, none of these obligations will be discharged and they will still need to be paid. If a person files for Chapter 13 protection and has the aforementioned debts, they will be included in the filing; however, if they are not paid off by the time the bankruptcy ends, the individual will still be responsible for those debts.

Individuals carrying car loans and mortgages should know that if they file a Chapter 13 bankruptcy, they will probably be permitted to keep their assets if they can make the payments as prescribed by the court-ordered payment plan.

Bankruptcy can be very helpful to those who need it the most. That is why it is a good idea for anyone who is facing mounds of medical bills or other types of debt to speak with a bankruptcy attorney to learn more about all available options.