Can Bankruptcy Discharge My Medical Bills In Ohio?

Filling for bankruptcy has never been an easy decision. Although it may be the only choice on the table, you need to look at both the consequences and gains critically. Each person will have a different reason for filing Chapter 13 or Chapter 7 bankruptcy.

However, understand that the most compelling reason for filing bankruptcy is usually due to overwhelming medical bills or credit card burden.

In this article, we will look at whether bankruptcy can get rid of your medical bills. The aim is to help you get a fresh start while discharging your debt.

Understanding Bankruptcy

Personal bankruptcy is divided into two distinct types – Chapter 7 and Chapter 13 bankruptcy. With Chapter 7 bankruptcy, an individual’s income is less than the debt payments and monthly expenses. This is mostly low-income individuals with unsecured debts like credit card debts and medical debts.

Chapter 13 bankruptcy is for individuals with enough disposable income to at least settle some of their debt. This type of bankruptcy lets you make payments to a trustee for a period of three to five years. The payments are redistributed to your creditors in order of priority.

Medical debt and bankruptcy

Medical debt is an unsecured debt, unlike mortgages and car loans. Because the medical debt is unsecured, it can be discharged in a chapter 7 or chapter 13 bankruptcy. This includes bills from Doctors, hospitals, labs or third party collectors.

Getting started

Filling for bankruptcy is takes more than just filling out forms and listing your debt. The first step is to determine whether you qualify to file for bankruptcy. There are income limits on Chapter 7 individuals, which a bankruptcy attorney at Granger Law Firm can advise you on.

Once you determine that you qualify to file for bankruptcy, you need to gather all the necessary financial documents. These include income tax returns, pay stubs bank statements and monthly bills. You will also be required to take a credit counseling course to help you understand all the different options.

Conclusion

There is nothing scarier than being stuck in a financial rut. Yes, filing for bankruptcy might not look attractive, but it just might be the right answer. The bankruptcy process offers you financial relief from credit card and medical debt. Contact Granger Law Firm for free advice on which option is better for you.