Your Medical Debt in Bankruptcy

: Reese Baker & Associates

  Filed under: Debt

medical debtDebts are categorized in different ways in a chapter 7 bankruptcy. There are secured debts, unsecured debts, priority debts and general type debts. They each get treated differently. Medical debts are normally classed as a non priority general unsecured debt. If there is any money in the bankruptcy estate this type of debt would be the last to get paid. If there did happen to be enough money left over where some could be placed against your medical debt, then anything not paid out would be discharged through your bankruptcy action.

Discharging Debt

Some medical bills have been ongoing for many years, and individuals have been struggling during this period of time to try and pay it out, but have not been able to do so. Others have a huge medical debt and are worried because it is so big it would not qualify for a bankruptcy. There is no limit on time in either how much the debt is or how long it has been going on in respect to the way it is handled in a chapter 7 bankruptcy.

When it comes to having your medical debt discharged it is important that you are able to qualify for a chapter 7 bankruptcy. In order to do this it means you income must be so minimal that it will meet the disposable income criteria in the means test.  While you may find that you do qualify you still need to determine is this is the best choice for you. This will partly depend on how many assets you have. The best option before taking any steps into bankruptcy is to consult with a qualified Bryan/College Station bankruptcy attorney first.