While there are many different ways to accumulate enough debt for it to be overwhelming, one of the most common is through medical expenses. Even a brief stay in the hospital, especially if you are underinsured or have no coverage, can create a financial burden large enough to put you on the back foot. Whether it is recovering from an unforeseen medical emergency or dealing with a chronic condition, costly co-pays, medications and emergency room bills can quickly swamp you with medical debt. If you desperately need help with medical debt, it might be time to consider filing for Chapter 7 personal bankruptcy to try and right the ship. Depending on your situation, medical bill bankruptcy can be an effective way to solve a medical debt problem.
Do I Qualify for Medical Bill Bankruptcy?
Anyone with medical debts can file for Chapter 7 bankruptcy. Medical bills are a non-priority general unsecured debt, which means you can have them discharged by filing for bankruptcy. Priority debts like child support or certain taxes and secured debts in which creditors have a lien on your property are debts that cannot be discharged through bankruptcy in nearly all cases. Bankruptcy will also stop all collection actions against you by creditors while you work on your case.
The only restriction is whether you qualify for Chapter 7 bankruptcy in general. This involves passing the New Jersey means test. In addition, you may also have to receive credit counseling from an approved credit counseling agency. There is no limit or cap on how much medical debt can be discharged through Chapter 7.
Can I Just File for Bankruptcy Related to Medical Bills?
There is no specific thing called “medical bankruptcy.” If you file for Chapter 7, you must include all outstanding debts you owe. Different types of unsecured and non-priority debts like medical bills, credit card bills, unsecured personal loans and promissory notes are all handled the same way. You cannot file for bankruptcy just for one type of debt.
Need Help with Medical Bill Bankruptcy?
Medical bill bankruptcy can offer a way out for those already going through the hardship of injuries and illnesses. Don’t let unresolved medical debt keep you from living your life. Stop the constant phone calls and letters jamming your mailbox. Contact the affordable bankruptcy experts at Schneider Freiberger today and together we can get started on the pathway to financial recovery.