Medical Bills can be discharged in bankruptcy

Medical Bills can be discharged in bankruptcy 

Medical bill debt is becoming the primary reason why many residents in the Metro, Detroit area are filing for Bankruptcy.  It’s not only the elderly population in this country that are incurring large medical bills, but also many younger individuals, age 35 or under.  Statistically, this age group tends to be either drastically under insured or uninsured entirely, due to loss of a job and health care coverage.  Without medical insurance, many individuals have to pay for medical expenses “out of pocket “. Under this circumstance, several small medical procedures can amount to a large bill and a catastrophic illness or injury can cripple a person financially.

If medical debt has made it extremely difficult to meet your financial obligations, bankruptcy may be a solution.  Medical bills in Chapter 7 bankruptcy can be completely discharge just like credit card debt and other forms of unsecured debt. The discharge of medical debt is more complicated in a Chapter 13 bankruptcy. A Chapter 13 bankruptcy is a type of debt reorganization plan in which some of your debt is paid off over a 3-5 year period. Since medical debt is considered unsecured debt, it is paid after “secure” debt like mortgages and what the federal government deems “priority debt” like child support and certain taxes. There are many requirements to filling a Chapter 13 bankruptcy, but generally after enough debt has been paid though the reorganization plan, all remaining unsecured debt is discharged. The attorneys at Bowser and Associate will review your finances to determine if filling a Chapter 7 or Chapter 13 bankruptcy is right for you.

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