Unexpected medical expenses can quickly become difficult to manage, especially when combined with other financial obligations. Bankruptcy Lawyers Vegas provides general information about how bankruptcy may affect unpaid medical bills and other types of debt.
Can Medical Bills Be Discharged in Bankruptcy?
Medical bills are generally treated as unsecured debt in bankruptcy because they typically are not backed by collateral. Depending on the type of bankruptcy, eligibility, and individual circumstances, qualifying medical debt may be discharged or addressed through a repayment plan.
Chapter 7 and Medical Debt
In a Chapter 7 bankruptcy, eligible medical bills may generally be discharged along with certain other unsecured debts. Qualification requirements apply, and the treatment of assets and other obligations depends on the circumstances of the case.
Chapter 13 and Medical Debt
Under Chapter 13 bankruptcy, medical bills may be included with other unsecured debts in a court-approved repayment plan. The amount ultimately paid toward unsecured debts depends on factors such as income, expenses, assets, and the terms of the plan.
Important Considerations Before Filing
Bankruptcy can have significant financial and credit consequences. Before considering bankruptcy because of medical bills, it can be helpful to understand the total amount and types of debt you owe, which debts may or may not be dischargeable, and whether other debt-relief options are available.
Every financial situation is different, and bankruptcy rules and outcomes can vary based on individual circumstances and applicable law.
