Millions of Americans live without health insurance, and tens of millions of others don’t have adequate insurance to cover their bills if significant medical expenses come up. A CDC survey indicated that more than 28 million people under the age of 65 had no health insurance.
While some debate the “number one cause” of bankruptcy, it is evident that vast numbers of people from all walks of life can’t afford to get sick or injured, with or without insurance. If you’re sitting on thousands (or tens of thousands) of dollars of medical bills that you simply can’t pay, you are not alone. The good news is that you may be able to utilize Chapter 7 bankruptcy to wipe out that crushing debt in one fell swoop.
What can I discharge in Chapter 7?
A lot. A successful Chapter 7 petition allows the filer to discharge all sorts of unsecured debt. That includes credit card debt, personal loan balances and medical debt from hospital stays, surgeries, treatments, specialists, tests and more. Discharge means the debt is gone once the bankruptcy is complete — no more harassment, bills, threats ro worries about how to make payments on those debts.
In order to file for Chapter 7 bankruptcy, you must qualify through the “means test.” You need to demonstrate that you don’t have enough income to pay the debt. An experienced bankruptcy attorney can answer your questions about that.
Advice about your debt situation
Each person’s circumstances are unique. Bankruptcy isn’t right for everyone. If you think it might be right for you and your medical debt, get advice from a professional.