Can I file bankruptcy for medical bills?
Yes, bankruptcy is a very common tool for people struggling with medical debt. You may be able to discharge all of the medical debt without paying anything towards the balance.
Should I file Chapter 7 or Chapter 13 for medical bills?
Generally, Chapter 7 is recommended to discharge medical bills. However, Chapter 13 can also be a great tool to discharge medical debt. Choosing the correct form of bankruptcy will depend on the specifics of each case, and you should contact an attorney for advice on your specific situation.
Do I have to pay medical bills if I file bankruptcy?
Most unsecured debts are discharged in Chapter 7 bankruptcy. Unsecured debts are loans that don’t have collateral, such as medical bills. The debts are eligible to be discharged regardless if you are current on the monthly payments or not.
How can I get rid of my medical bills?
Generally, Chapter 7 is recommended to discharge medical bills. However, Chapter 13 can also be a great tool to discharge medical debt. You may be able to discharge all of the medical debt without paying anything towards the balance with either Chapter 7 or Chapter 13 bankruptcy.
Are the programs for COVID medical bills?
All medical bills from coronavirus should be dischargeable in bankruptcy. The discharge is a permanent court order releasing your personal liability on the debt. Further, the discharge prohibits a creditor from taking any future collection action.
Is it common to file bankruptcy because of medical bills?
Yes, many people file bankruptcy because of medical bills. A study by the American Journal of Medicine, found that 62.1% of all bankruptcy cases are attributable to medical reasons. Further, the study found that 92% of the people filing bankruptcy for medical reasons had over $5,000 in medical bills.
Is Chapter 7 good for medical bills?
It is very common for medical bills to be discharged in Chapter 7 without any payments to the creditors. In Chapter 7, the debtor does not make monthly payments to their creditors. Instead, non-exempt assets may be liquidated to pay back the debts.
Can Chapter 13 help with medical bills?
Unlike Chapter 7, Chapter 13 requires borrowers to create a payment plan. The payment plan should outline how the income the borrower receives will be used to pay medical bills. The allocation of payments must be feasible for both the borrower and creditor.
