Can you eliminate medical bills or medical debt in bankruptcy?
Medical bills and bankruptcy are closely related. Unfortunately, medical care is expensive, health insurance is expensive, and medical illnesses or medical emergencies usually come without any warning, at any time. The combination of having to pay for the medical care and being out of work because of the medical issue results in a serious loss of income. If you are sick, it is hard to work.
One of the most common reasons people file bankruptcy in the US is because of medical bills. The short answer is yes, if you file under Chapter 7 or Chapter 13 of the Bankruptcy Code, most or all of your bills will not have to be paid back and will be considered discharged. Many reports are available on how a large percentage of the population is only one serious medical illness or medical emergency away from filing bankruptcy. The question we often hear at our Houston bankruptcy law firm is, "can I eliminate my medical bills if I file bankruptcy?". Under Chapter 7, you do not pay back any of your medical bills, you eliminate them all. Under Chapter 13, you might have to pay back a portion of your medical bills, anywhere from 0.01 % of the bills up to 100% of the bills, it depends on your situation.
The reason medical bills can be eliminated is because they are considered general unsecured non priority debts. Contact a Houston bankruptcy attorney from the Rashid Law Firm for more information regarding medical bills and bankruptcy in Houston.
*Other common reasons for filing bankruptcy in Houston are separation, divorce, death, underemployment, and unemployment.*