Medical Debt in Bankruptcy
Medical Debt in BankruptcyLiviakis Law Firm assists individuals and families who are facing problems with debt. A common cause of severe financial difficulty is overwhelming medical debt caused by a sudden catastrophic injury or illness, or the need for long-term medical treatments, rehabilitative therapy or day-to-day health care. Incurring substantial medical debt is often accompanied with feelings of helplessness and anxiety that can lead to additional medical problems.
Such a burden is particularly frustrating and difficult to overcome for the elderly who are living on a fixed income. Filing for bankruptcy can provide a reprieve from these kinds of crushing debts.
To learn about discharge of medical debt in bankruptcy, contact us today for a free initial consultation.
Does Bankruptcy Clear Medical Bills?Medical debt is unsecured debt, dischargeable under Chapter 7 and Chapter 13 bankruptcy.
When filing for Chapter 7 bankruptcy, your nonexempt assets will be liquidated by the bankruptcy trustee and the proceeds apportioned to creditors in full satisfaction of your debts. As unsecured debt, your medical creditors will be prioritized behind lenders that guaranteed loans secured by collateral. In some cases, medical debt is completely written off.
Under Chapter 13 bankruptcy, your medical debts will be incorporated into a repayment plan that fits your budget, to be paid in manageable payments over the course of three to five years. At the end of this time, your debts will be fully satisfied with any remaining balance discharged.
As a skilled, experienced lawyer, knowledgeable in relevant California laws, I will also make sure that the medical debt incurred was appropriate under California’s Health and Safety Code. If you were charged more than permitted by your medical provider, filing for bankruptcy due to medical debt may be unnecessary.