Got An Enormous Medical Debt?

Got An Enormous Medical Debt? Let’s Find Out If It Can Be Eliminated In Bankruptcy

You have ensued over $30,000 in your medical bills, which now seems unendurable to you. Well, the figure does even count the $10,000 you’ve just put on your credit cards. Now, you are considering filing bankruptcy to see if or not it could help eliminate some of the charges.

Always prefer consultation with medical bill attorney!

Medical debts are amongst the most common reasons why people file bankruptcy. Today, we will discuss if or not bankruptcy could play any role in eliminating medical debts.

How does bankruptcy treat medical debts?

As you file bankruptcy, all your debts are segregated into several categories. While some debts are treated on priority basis, some are declared untreatable in the beginning only.

Providentially, medical bills are amongst the unsecured debts that are usually treated under bankruptcy.

In bankruptcy, medical debts are considered common kinds of unsecured debts just as your credit card bills. Although, they do not receive any prioritized treatment, but can be discharged by filing bankruptcy.

Here’s how bankruptcy can discharge your medical debts Based on the bankruptcy type you qualify for (or what’s in your best interest), your medical debts may be eliminated by filing either Chapter 7 or Chapter 13 (which can be complicated sometimes, given the circumstance).

What happens to your medical bills in Chapter 7 bankruptcy?

Assuming you have qualified for Chapter 7 bankruptcy, chances are your medical bills can be wiped out just as other common unsecured debts. Well, if you are now thinking, if or not, there is any limit to the amount of medical bills that can be discharged, then let us tell you that there is no such limitation yet in Chapter 7 bankruptcy. To qualify for Chapter 7, however, your income should be low enough, so you could pass the Means Test.

What happens to your medical bills in Chapter 13 bankruptcy?

Well, just like your other common kinds of debts, your medical debts as well go lumped in the repayment plan. The amount to be paid every month to your creditors is determined by your income, nonexempt assets and expenses.

Each of your creditors then takes a proportional share of the total amount going into the debts.

This is usually dimes on the dollars. However, remember one thing that you may not file Chapter 13 bankruptcy if the combined amount of your total debts exceeds the amount limit allowed in Chapter 13.

For expert consultation on such complicated financial crisis, contact medical debt defense lawyers at Recover Law Group – A trusted name in consumer protection law firm.