Can I discharge medical debts by filing for bankruptcy in Colorado?
Many people are driven to bankruptcy by medical bills they can't pay. In fact, a recent study showed that more than half of those who filed for bankruptcy did so either because of high medical bills or because a medical condition had limited their earnings. If you're in this situation, the good news is that medical debts are wiped out in bankruptcy. At the end of your case, these debts will be discharged. this is true whether you file for bankruptcy in Colorado or any other state.
Certain kinds of debt survive bankruptcy, including child support, back taxes, and student loans (with a few exceptions). If you have secured debt (debt that gives the creditor the right to take property if you default, such as a mortgage or car note), you will have to stay current on your payments if you want to keep the property. You can wipe out your personal liability to repay these debts in bankruptcy, but the creditor will still have the right to take the property securing the debt.
Medical bills are not secured debts, nor do they fall into any of the categories of debt that survive a bankruptcy filing. Once you receive your bankruptcy discharge, you will no longer owe these debts.
Updated by: Kathleen Michon, J.D.