Can I file bankruptcy on medical debts in Maryland?

If you are considering filing for bankruptcy in Maryland, it may be in part due to overwhelming medical bills. However, before you file filing for bankruptcy in Maryland, you must understand that you will not be allowed to segregate your debt and pick and choose which are part of your bankruptcy.

Considerations When Filing

There are eligibility requirements for filing for bankruptcy. You must be able to prove that you cannot pay back your creditors over a three to five year period in order to be eligible. If your credit card payments and other non-secured debt (including medical payments) are past due and you have no way to repay them, you may be a candidate for bankruptcy.

Items that Are Exempt

Bankruptcy filing eliminates non-secured debt that you are unable to pay. If you are planning to file filing for bankruptcy in Maryland, you can exempt your home, automobile and certain other items such as savings plans and retirement plans. This does not mean that you do not have to make your home or auto payments; it simply means that you will not lose them in a bankruptcy filing.

Medical Bills

Unfortunately, there is no such thing as "medical bankruptcy." Although one of the many leading causes of bankruptcy filings are medical bills, you cannot file only to eliminate medical bills. All of your non-secured creditors must be claimed as part of your bankruptcy filing.

Getting the Help You Need

If you are buried under a mountain of debt and considering filing for bankruptcy in Maryland, you need to talk to a bankruptcy attorney. He can help you determine if you are eligible to file and what exclusions may apply to your individual case.