Medical Debt in Bankruptcy

Is Medical Debt Dischargeable in Bankruptcy

Hedtke 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. Quite often a losing a job and health insurance coverage can lead to insurmountable medical bills. 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 completely erase these kinds of crushing debts.

To learn about discharge of medical debt in bankruptcy, contact the Hedtke Law Firm at 760 482-1737 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 most Chapter 7 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.

Call the Hedtke Law Firm today to schedule a free consultation about bankruptcy and tax debt. Call us at 760 482-1737.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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