How To Get Medical Bills Discharged By Filing Bankruptcy

There is no question that the costs of medical treatment are outrageous. Health insurance companies are also finding more ways to deny coverage or to keep coverage to a bare minimum for a number of therapies. Then there are times when someone has found themselves in need of life-saving surgeries only to receive bills that far outstrip their ability to pay them.

Filing Bankruptcy to Discharge Medical Debt

It must be noted that when you're filing for bankruptcy for medical debt, you must also include every other debt you have. Examine your financial situation first before going any further. Be sure that this absolutely the right choice for your situation.

Filing Under Chapter 7

Which chapter of bankruptcy you choose is entirely dependent on your income. If you're unemployed or even underemployed, it's best to choose chapter 7. This will ensure a full discharge of debts at the end of a four to five month time frame. None of the creditors will ever be able to dun you for the money again. There are consequences to making this choice, ones you should be fully aware of:

• You cannot file bankruptcy again for eight years. If the debt was a once in a lifetime occurrence, you should be OK.
• It will take a few years for your credit to recover to a point where it won't cause trouble on credit applications.
• Not all debts can be discharged through bankruptcy. Medical bills will be relieved but others may survive.

Filing Under Chapter 13

If you're in a situation where you feel that you can make payments, chapter 13 is a better route. The health providers will provide payment plans, but they're not always ones that can be easily handled. Filing under chapter 13 allows you to make payments for three to five years, with the balance remaining being discharged at the final date. It's also makes less of an impact on your credit and allows you to rebuild your financial situation on your terms. Future creditors will see that you're willing to pay down at least some of the debt and be more likely to give you a line of credit when you need it.

Talk to a Bankruptcy Lawyer

Talk to a lawyer before you make any decisions. It's best to work with someone who's seen bankruptcies that are by and large medical debt. They're going to know best how to handle the situation and be a voice for you. A bankruptcy attorney will take a look at your situation and be able to guide you through the appropriate bankruptcy filing from beginning to end.