If you have significant medical debt and have spent some time online searching for a solution for it, you have probably come across the phrase “Medical Bankruptcy”. While there is no specific type of bankruptcy just for medical debts, many people with high medical debts would benefit from filing for bankruptcy to resolve this problem.
When filing for bankruptcy, all debts must be included; you cannot pick and choose. Those with significant medical debts would list those, alongside any credit card debt, personal loans, utility arrears, etc. While the term “Medical Bankruptcy” has no definition in the bankruptcy law, it is useful in illustrating through the media how common it is for people to suffer financially due to crushing medical debt. Exact figures are hard to come by, but a review of studies shows that perhaps 40-60% of Chapter 7 filers are affected by medical debt.
If you have medical debts that you cannot pay, contact me and we will discuss whether bankruptcy is the right decision to relieve you of that burden.