Can you get rid of medical debt by declaring bankruptcy?
Can you get rid of medical debt by declaring bankruptcy? The short answer is yes, but it's a lot more complicated than that.
Most people know that it's possible to get rid of credit card debt with bankruptcy, but many don't realize that medical debts can also be discharged. However, this isn't a free ticket to clearing all your medical debt—it only works in certain circumstances.
I'll start with an important disclaimer: this article is for informational purposes only, and should not be taken as legal advice. If you are considering filing for bankruptcy, you should meet with a qualified bankruptcy attorney in your state to discuss whether it is the right option for you.
When you declare bankruptcy on medical bills, it's known as an "unsecured" debt—this means that it's not backed by collateral or guaranteed by any financial asset. This also means that the amount of debt that you're able to have discharged will depend on how much income you make and how much property you own. A good way to think about it is that if the majority of your income goes toward paying other unsecured debts (like credit cards or student loans), then most of your unsecured debts will be cleared up in bankruptcy. However, if your income goes mostly toward paying bills or taxes where there's something backing up the loan (like a house mortgage or child support), then less of your
Medical debt is one of the most common reasons for bankruptcy in the United States, but it can be especially tricky to eliminate through bankruptcy. There are several ways that people try to deal with medical debt, including taking out a loan from a bank or from friends and family. However, these methods have their own risks and may not actually help you solve your medical debt problem.
If you need a Chapter 7 Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
