Can a bankruptcy get rid of medical bills? When it comes to financial struggles, one of the most common types of debt that people have is medical debt. Medical bills can quickly accumulate, especially if you have a serious illness or injury, and they can be difficult to pay off due to the high costs of healthcare. If you are struggling with old medical bills, you may be wondering if bankruptcy can help.
The answer is that it depends on the specifics of your situation, but filing for bankruptcy in Montgomery can potentially provide some relief for old medical bills.
There are two types of bankruptcy that individuals can use to address old medical bills: Chapter 7 and Chapter 13. Here is a brief overview of how each type of bankruptcy can potentially help with old medical bills:
One of the benefits of Chapter 7 bankruptcy is that it can provide a fresh start for individuals who are struggling with overwhelming debt. If you qualify for Chapter 7 bankruptcy, you may be able to discharge (eliminate) some or all of your old medical bills. However, there are some limitations on which medical bills can be discharged through Chapter 7 bankruptcy in Clanton. Specifically, the following medical bills may be dischargeable through Chapter 7 bankruptcy:
- Medical bills that are more than three years old.
- Medical bills that were not incurred due to fraud or malicious intent.
- Medical bills that are not dischargeable under other bankruptcy provisions.
It is important to note that not all old medical bills will be dischargeable through Chapter 7 bankruptcy. If you are considering using Chapter 7 bankruptcy to address old medical bills, it is a good idea to consult with a Prattville bankruptcy attorney to determine which of your medical bills may be dischargeable.
Chapter 13 bankruptcy is another type of bankruptcy that is available to individuals. It is often referred to as a “reorganization” bankruptcy, as it involves the reorganization of debts into a repayment plan. One of the benefits of Chapter 13 bankruptcy is that it can provide a way to catch up on missed payments on secured debts, such as a mortgage or car loan. In addition, Chapter 13 bankruptcy can potentially help with old medical bills by allowing you to include them in your repayment plan. This can provide a way to catch up on missed payments and avoid collection actions from hospitals and doctor offices.
It is important to note that not all old medical bills will be eligible for treatment under a Chapter 13 bankruptcy repayment plan. In order to be eligible, the medical bills must meet the following criteria:
- The medical bills must be unsecured debts. Medical bills are typically unsecured debts, which means that they are not tied to any specific property. This makes them eligible for treatment under a Chapter 13 repayment plan.
- The medical bills must not have been incurred due to fraud or malicious intent. Medical bills that were incurred due to fraud or malicious intent may not be eligible for treatment under a Chapter 13 repayment plan.
While bankruptcy can potentially provide some relief for old medical bills, it is important to keep in mind that it is not a solution for everyone. Bankruptcy will not discharge all medical bills. As mentioned earlier, there are limitations on which medical bills can be discharged through bankruptcy. If your medical bills are not eligible for discharge, bankruptcy may not provide the relief you are seeking.
If you are struggling with old medical bills, bankruptcy may be able to provide some relief. Both Chapter 7 and Chapter 13 bankruptcy can potentially help with old medical bills, although there are limitations on which medical bills can be discharged or treated under a repayment plan. If you are considering using bankruptcy to address old medical bills, it is a good idea to consult with a bankruptcy attorney in Millbrook, or wherever you reside, to determine which type of bankruptcy is right for you and to understand the potential benefits and drawbacks of the bankruptcy process.
Attorney Steven A. Harris regularly blogs in the areas of family law, bankruptcy, probate, and real estate closings on this website. Mr. Harris tries to provide informative information to the public in easily digestible formats. Hopefully you enjoyed this article and feel free to supply feedback. We appreciate our readers & love to hear from you!