You may be wondering whether or not you can discharge your medical debt through bankruptcy. The short answer is, yes. Many individuals have circumstances that lead to high medical bills that they’re unable to pay, a burden that can be completely cleared with a discharge of a chapter 7 bankruptcy.
Medical debts are considered unsecured non-priority debts, meaning they’re entirely dischargeable in a chapter 7 bankruptcy. Once these debts are discharged, you are no longer responsible and creditors may no longer come after you. In order to qualify for a chapter 7 bankruptcy, you need to pass an income means test. This means you (and your spouse if applicable) need to satisfy certain income requirements in order to be eligible for chapter 7 relief. This is something your attorney at Hoglund Law will be happy to analyze with you at your free bankruptcy consultation meeting.
It is important to keep in mind that your chapter 7 bankruptcy will only discharge debts that are outstanding at the time of filing. If you know that you are soon to be incurring significantly more medical debt, it may be worth waiting to file until after that happens. It’s also important to keep in mind that you may only be granted relief under a chapter 7 bankruptcy once every 8 years. This means, if your medical care or the medical care of your family is ongoing, or you know a large expense is coming soon, you may want to wait until treatment is complete before filing for bankruptcy.