Medical Bills and Bankruptcy
Unexpected medical expenses can create serious financial pressure, especially when combined with reduced income or other household debts. If medical bills have become difficult to manage, bankruptcy may provide an option for addressing qualifying medical debt.
A bankruptcy attorney in Chicago can help you understand how medical bills are treated in bankruptcy and whether Chapter 7 or Chapter 13 may be appropriate for your financial situation.
Can Medical Bills Be Discharged in Bankruptcy?
Medical bills are generally considered unsecured debt. In many cases, qualifying medical debt may be discharged through Chapter 7 bankruptcy along with other unsecured obligations such as credit card debt and personal loans.
With Chapter 13 bankruptcy, medical bills may be included with other eligible unsecured debts in a court-approved repayment plan. The amount that must be repaid depends on the circumstances of the case.
When Medical Debt Becomes Overwhelming
You may want to explore bankruptcy options if you are dealing with:
- Large unpaid hospital or medical bills
- Multiple medical collection accounts
- Credit card debt resulting from medical expenses
- Collection calls or lawsuits
- Difficulty paying medical debt along with regular living expenses
Bankruptcy is not appropriate for every financial situation. Your income, assets, other debts, and overall financial circumstances should be considered before deciding to file.
Explore Your Bankruptcy Options
If medical bills and other debts have become difficult to manage, learning about bankruptcy can help you understand your available options. Consider speaking with a Chicago bankruptcy attorney about Chapter 7, Chapter 13, and how bankruptcy may affect qualifying medical debt.
