What You Should Know About Medical Bankruptcy

At least once a week someone comes into my office for a consultation to tell me how

they can no longer pay their bills because of an unexpected medical emergency. Hospital and doctor bills have left them struggling to make ends meet, yet they feel guilty for contemplating bankruptcy when they know it means that they won't being paying that people who helped them. The fact is, they are not alone. Medical debt is one of the top three reasons, along with unemployment and divorce, for which my clients file bankruptcy.

Bankruptcy, either Chapter 7 or Chapter 13, will eliminate medical bills. Chapter 7 doesn't require you to pay any of those bills back, but Chapter 13 might require you to pay back a portion of those bills, depending on your monthly income and allowable expenses.

The question for me isn't whether someone can file to get rid of these medical bills. The question for me is when someone should file. If their medical condition hasn't been resolved and they expect more bills, they should wait until they've gotten better or have health insurance to cover future expenses. Bankruptcy will only get rid of medical bills that were taken on before someone files. If they get treatment after they file, those bills will not be included. You must wait eight years before you can file Chapter 7 again.

You should know that when you file bankruptcy, you have to include all of your debts. That means that you won't be discharging only your medical bills. If there are debts that you want to keep, like a car loan, you can reaffirm them but you can't decide not to list them on your petition.

One more thing to consider is that if your spouse is not filing, the medical provider might try to go after him for those bills. They might argue that he is responsible for them under the "family necessities" doctrine, though it is unclear in Colorado whether medical bills fall under this doctrine. They'll use a lawsuit, or threat of a lawsuit, to persuade your spouse to pay the bills that you're filing bankruptcy to get rid of. Consider whether it might be a better idea for both of you to file.

If you have overwhelming medical debt, you should consider talking to an experienced attorney about medical bankruptcy.

by: Peter Mullison

POST COMMENT

What Are The Benefits Of Medical Billing Software? Hire Professional Medical Editing Services Today! Features About Getting Your Medical Html Coding Official Certifications On The Web Features About Having A Good Rn Medical Level On-line Traits Of Medical Billing Software In Accounting Services Medical Advancements In Technology Medical Grants: An Antidote To Pricey Medical Treatment What To Consider When Outsourcing To A Medical Billing Ar Management Company Have You Considered Medical Assistant Training? Going For A Certified Course In Medical Assistant Or Nursing Assistant Training, Know These. Mobile Medical Apps Market - Global Industry Analysis, Size, Share & Forecast, 2010 - 2017 Medical Alert Band Details Get Help From Medical Professionals For Curing Drug Addiction