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ELIMINATING MEDICAL BILLS IN BANKRUPTCY
Are you getting daily calls about overdue medical bills or liens from doctor’s offices and hospitals? Have you incurred substantial medical bill debt? Medical bills continue to be one of the main reasons why consumers seek bankruptcy protection. Doctors, hospitals, and other healthcare providers are focused on collecting for their services. They codemelists, about 90 co3</antly, and what this relates to here. If you don’t pay your bill, they can file a lawsuit with the goal of obtaining a civil judgment against you. A judgment may allow them to garnish your wages, freeze your bank accounts, and more. It may surprise you to learn that next to credit card bills, medical expenses are one of the leading causes of bankruptcy. We can help you file either Chapter 7 or Chapter 13 bankruptcy, giving you a chance to get back on your feet again.What Happens to Medical Bills When You File Bankruptcy?
Whether you have a sudden illness, a medical coverage lapse, or you need a medical procedure that is not covered by insurance, you have options for taking care of medical debt. In bankruptcy, medical bills are considered general unsecured debts just like your credit cards. This means that medical bills don’t receive priority treatment and can easily be wiped out by filing for bankruptcy. When you file Chapter 7 bankruptcy, most medical bills will be completely eliminated. There is no limit to the amount of medical debt you can discharge in Chapter 7 bankruptcy. In Chapter 13 bankruptcy, medical bills are lumped together with your other general unsecured debts in your repayment plan. The amount you must pay unsecured creditors depends on your income, living expenses, and nonexempt assets. With Chapter 13 bankruptcy, you will pay what you can afford over three to five years. At the end of the designated time, any remaining medical debt is discharged. If you feel like you need some help with medical bills, then search around on the internet for some funding options that could be available to you that could help pay off your medical bills so you are able to focus on your bankruptcy instead.Medical Bills in Bankruptcy Frequently Asked Questions
The following frequently asked questions provide general information about how medical debt may be handled in bankruptcy. Every case is different, so consult an experienced bankruptcy attorney about your specific situation.
Can medical bills be discharged in bankruptcy?
Medical bills are generally treated as unsecured debts and may be be discharged in Chapter 7 or included in a Chapter 13 repayment plan, depending on the facts of the case and applicable bankruptcy law.
Are medical bills considered priority debts?
Medical bills are generally classified as nonpriority unsecured debts rather than priority debts.
Can Chapter 7 eliminate medical debt?
Chapter 7 may discharge qualifying medical debt when the debtor is eligible and no exception to discharge applies.
Is there a limit on how much medical debt Chapter 7 can discharge?
The Bankruptcy Code does not impose a separate dollar limit specifically on qualifying medical debt that may be discharged.
How are medical bills treated in Chapter 13?
Medical bills are generally grouped with other unsecured debts in a Chapter 13 repayment plan.
What happens to unpaid medical debt after a Chapter 13 plan?
Qualifying unpaid medical debt may be discharged after completion of the repayment plan and satisfaction of legal requirements.
Can bankruptcy stop medical debt collection calls?
Filing bankruptcy generally triggers the automatic stay, which stops most collection calls and collection activity.
Can bankruptcy stop a medical debt lawsuit?
The automatic stay generally stops most pending collection lawsuits after a bankruptcy case is filed.
Can bankruptcy stop wage garnishment for medical bills?
The automatic stay generally stops most wage garnishments based on medical debt after bankruptcy is filed.
Can a hospital freeze my bank account over medical debt?
A judgment creditor may pursue collection remedies allowed by law. Bankruptcy may stop many of those actions through the automatic stay.
Can a doctor or hospital place a lien because of unpaid medical bills?
Depending on the facts and applicable law, a provider or judgment creditor may have lien rights or other collection remedies.
Do I have to include all medical bills in my bankruptcy?
Yes. You should disclose all known creditors and medical debts.
What if insurance is still reviewing my medical claims?
Pending insurance payments and disputed balances should be disclosed to your bankruptcy attorney.
Can I keep using my doctor after filing bankruptcy?
Bankruptcy does not automatically require a doctor to continue providing nonemergency services.
Will bankruptcy cover future medical bills?
Bankruptcy generally addresses debts that arose before the filing date. Future medical bills are usually new obligations.
Can I pay a doctor after the medical debt is discharged?
Yes. A debtor may voluntarily repay a discharged debt even though collection generally cannot be forced.
Can medical debt affect my credit?
Medical debt and bankruptcy can affect credit, although many people begin rebuilding credit after discharge.
Should I use Chapter 7 or Chapter 13 for medical debt?
The better option depends on income, assets, debt type, and your overall financial situation.
What documents should I bring to a medical debt bankruptcy consultation?
Bring medical bills, insurance records, collection letters, lawsuits, judgments, pay records, tax returns, bank statements, and a list of assets and debts.
Does Ferguson & Ferguson offer free consultations for medical debt bankruptcy?
Yes. Ferguson & Ferguson offers free bankruptcy consultations through its Huntsville and Decatur offices.