Can You Permanently Discharge Medical Bills? When Is the Best Time to File for Bankruptcy Protection?
You’ve suffered a serious injury or illness. As a result, you’ve racked up substantial medical bills, many of which are not covered by your health insurance. You might be unable to work because of your health issues, but you also may be unable to pay your medical bills and meet your other obligations. Can you discharge medical debt through the bankruptcy process? If so, when is the best time to seek protection?
Medical Debt Can Always Be Discharged
The good news—medical debt can always be discharged in a Chapter 7 filing. In fact, studies show that about two of every three Chapter 7 bankruptcy filings involve some level of medical debt. Medical debt is generally unsecured debt, similar to credit card debt, and has no limits on discharge.
You will, however, have to qualify for Chapter 7 by submitting to a “means test,” where the bankruptcy court looks at your total debt and financial resources to confirm that you lack the ability to repay your creditors over a three-to-five-year period.
When Is the Best Time to Discharge Medical Debt in Bankruptcy?
A Chapter 7 bankruptcy can discharge only debt that you have already incurred at the time of filing. Accordingly, it’s generally best to wait to file until after your treatment is completed or you have fully recovered your health. Though you can conceivably file another Chapter 7 petition should your health problems return, the waiting period to file a subsequent Chapter 7 is eight years. Wait as long as you can, so that you can discharge as much medical debt as possible.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
Let us help you take the right steps and make good decisions when filing for personal bankruptcy protection. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.
