bankrupt medical debts

Bankruptcy with medical bills

Medical debt is on of the most common reason that people file for bankruptcy. It even surpasses mortgage debt and credit card debt. Bankruptcy with medical bills occurs when the price of treating a disease, injury or sickness becomes greater than what the patient is able to pay. Even some individuals with medical insurance have to file for bankruptcy because of medical bills.

Medical debts are usually treated as unsecured debts so they can be wiped out in your bankruptcy. With a Chapter 7 bankruptcy there is no limit on the amount of debt that you have, you do however have to have a low enough income in order to qualify for it. There are certain classifications of debt in a Chapter 7 bankruptcy. They are unsecured, secured, priority, and non-priority general unsecured debts. Medical debt will be treated as a non-priority general unsecured debt which means that medical debts don’t usually receive a priority if the Chapter 7 trustee can make payments to creditors. Even if a chunk of your medical debt is paid through the bankruptcy the rest will be wiped out and you’ll get a discharge from the debt. So if you’re struggling with debts from medical bills then filing for a Chapter 7 bankruptcy could be a great way to help your situation.

Unlike a Chapter 7 bankruptcy, in a Chapter 13 bankruptcy there is a limit on the debt amounts you can have as well as your income so therefore you may be unable to qualify if your debt is too high. Whatever the cause of your debt might be there is a way to obtain a fresh financial start. Contact us today at the Law Office of Douglas Barrett, LLC and set up an appointment so we can help you get rid of your medical debt or other debts you may have and obtain your fresh financial start.

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