Should I file Chapter 7 bankruptcy for medical debts?

Whether you file chapter 7 bankruptcy for medical debts depends on whether you have more debts than you can pay. Medical debts like credit card and payday loans are considered unsecured debts. This means that the health care professionals provided you medical service based on your ability to pay. However, with high deductible health insurance or the inability to obtain health insurance because of a pre-existing health condition, it can be hard to make the medical payments when they are due.

Therefore, filing chapter 7 bankruptcy for medical debts should be seriously considered. Chapter 7 totally eliminates the unsecured debts that you owe. This means that the U.S. Bankruptcy Courts legally allow you not to pay the money you owe healthcare professionals and other creditors. Usually, the chapter 7 process takes about six months to complete. Before that time, you must complete pre-bankruptcy credit counseling and complete a means test. The pre-bankruptcy credit counseling requires you to meet with a credit counselor and discuss your finances. If you have the ability to pay the medical debts such as making payment arrangements, then a counselor will suggest those to you. However, you don’t have to take the suggestions.

Talk with a bankruptcy lawyer about filing chapter 7. The bankruptcy lawyer will make sure you’re eligible to file chapter 7. If you are, then the lawyer can file your petition after you’ve met after all the requirements are met.