According to research done by the Kaiser Family Foundation, roughly one-quarter of adults under the age of 65 struggle to pay medical bills, and some have declared bankruptcy due to medical bills. Medical bills for someone who is on a limited income due to a medical condition simply compound the financial problems they experience. 

If you are struggling to pay your medical bills, especially if you are unable to remain gainfully employed, and doing so has caused you to reduce your spending on basics and essentials such as housing and food, it may be time for you to consider filing for Chapter 7 bankruptcy.

A Chapter 7 bankruptcy can help you reclaim your financial wherewithal; however, there are a few important things to do before filing for bankruptcy. Here's what you need to know.

Delve Into Your Credit Report 

Even though doing so may elicit feelings of nausea, you need to take a deep dive into your credit report. What you'll want to look for is to make sure everything you've been unable to pay is listed in the credit report. Why? Because the credit report will help you list the debt you want to be discharged when you file for Chapter 7 bankruptcy. 

If you realize that something is not listed in your credit report, you'll want to find documentation in your personal records showing the name of the creditor and how much you owe to them so you can show your bankruptcy attorney. It's important to do this even though the creditor never reported your account with them to the credit reporting agencies so it will be discharged along with the others. 

Document Everything

In addition to finding information on creditors and how much you owe, you'll also want to provide the attorney with documents for everything related to your financial situation, such as your income, bank statements, property titles, investment accounts, and lists of assets. Your bankruptcy attorney will tell you how far back to go when you're gathering your documentation, such as six months' worth of bank statements or the last four pay stubs.

This is important because Chapter 7 bankruptcy is means-tested, so you'll need to prove that you do not exceed the income and asset limits. If your documentation shows that you do not meet the means-test for a Chapter 7 bankruptcy, your attorney will discuss your options of filing a Chapter 13 bankruptcy instead, which will result in a payment plan instead of a complete discharge of your debt. 

Pay the Attorney's Retainer

In most cases, bankruptcy attorneys prefer payment for the retainer up front, but some attorneys do allow for a payment plan to be set up. It's important to discuss the payment of the retainer with the attorney and how the payment timeline may affect the bankruptcy filing. Most attorneys who permit payment plans will want the account paid in full before they file the bankruptcy, or they themselves could be listed in the bankruptcy proceedings as a creditor.

However, during the payment plan, the attorney can still work on your behalf, particularly if you are getting phone calls or written correspondence from your creditors. The reason for this is that a retainer paid up front or through a payment plan will establish an attorney-client relationship between you and your attorney, which will allow you to direct creditors to your attorney who can then inform the creditors that you are working towards filing for bankruptcy. 

No one should have to choose between paying medical bills and eating a healthy meal or having a roof over their head. If you are struggling financially because of medical bills, speak with a bankruptcy attorney for legal advice.