Are Medical Bills Dischargeable In Bankruptcy?
Each year millions of Americans are forced to file bankruptcy as a result of overwhelming medical bills. When a consumer files bankruptcy, he must list all of his debts, including medical bills, credit card debts, mortgages, auto loans, tax debts, student loans, and domestic support obligations in the bankruptcy petition. The debts are divided into three categories: • Secured; • Priority Unsecured Debts; and • Unsecured Debts. Generally, medical bills are unsecured debts. Like most unsecured debts, medical bills are dischargeable. In a Chapter 7 bankruptcy case, a debtor’s unsecured medical bills would be wiped out. In a Chapter 13 case, depending on his net monthly income and the amount of secured vs. unsecured debts, a debtor may be required to pay a portion of his medical bills and other unsecured debt. However, there is the possibility that a Chapter 13 debtor would not have to pay any of his medical bills or other unsecured debt. In the rare instances where the provider of medical
