Can I Get Rid of my Medical Debt?

Your life is now saved

But it put you in a hole

Bills can be discharged

Health insurance, or the lack thereof. Do you have overwhelming medical bills without an idea how your income will be able to pay it off? So your next question is, are medical bills dischargeable in bankruptcy?

Yes. Medical bills are generally labeled as general unsecured debt in a bankruptcy, of which, that debt is dischargeable. This is great news since health care is simply unaffordable to a large population in the U.S. (2021 Census Bureau found that 1 in every 5 households could not afford it).

Some types of unsecured debt that can be discharged are:

• Medical Bills

• Utility Bills

• Back Rent

• Personal Loans

• Credit Card Bills

If someone decides to file for bankruptcy, you would get the benefit of not being personally responsible to repay your medical bills upon entry of the discharge order, but the remainder of your general unsecured debt, such as credit cards, will also be discharged. The key in determining whether a debt or bill is dischargeable is how it is classified (ie. general unsecured, priority, secured, etc).

If you are still seeking medical treatment and accumulating bills, it might be a better idea to wait to file bankruptcy, since the bills accumulated before the filing of bankruptcy will be the only bills eligible for discharge.

If you have any concern about the doctor still providing treatment to you because you filed for bankruptcy, a hospital is not permitted to turn away service. A private establishment, such as a plastic surgeons’ office, is allowed to refuse service. If you are interested in maintaining a relationship with your private healthcare provider, and you’re unable to foot the full bill, sometimes these providers are willing to accept smaller monthly payments so that they are receiving some cash rather than nothing at all.

If the medical provider is not receiving any payment, they would have the right to file a civil complaint against you to collect on the owed amounts. Once they file a complaint, they will then try to obtain a judgment for the court, which could then result in a wage garnishment against you. Filing for bankruptcy can help stop this civil lawsuit efforts (they would have to stop proceeding because the automatic stay will go into effect immediately upon filing of the petition) and could reverse/stop the garnishment. Then, if you receive a discharge order from the bankruptcy court, you will get the medical bill balance wiped away and will no longer be responsible for it.

Ultimately, medical bills is only a small facet when considering whether bankruptcy is appropriate for you. Call/text (301) 550-5408 to schedule a free consultation (in person or video chat) to have a specialized bankruptcy attorney give you further insight on your specific circumstance.