Medical bills are easily discharged in bankruptcy. Medical debt is one of the most common reasons why people have to file bankruptcy. Judges and trustees are well aware of how easy it is for medical debt to drive someone into bankruptcy. Medical debt is classified as “general unsecured debt” which means it is the lowest priority of debt in the bankruptcy process. As with any debt, medical collections stop immediately after you file your case.
Medical debt can be discharged whether you are making payments on an account or you are being garnished for it. If you hire our office, we can take the calls of any medical collectors who are harassing you while you get ready to file your case. Medical debt can be discharged as long as it’s for medical care you received before you filed your case. If you think medical bills are covered by insurance but you end up being liable for them they will still be discharged in a bankruptcy filed after you received the care.
You may wonder if a doctor will continue treating you after you discharge a medical bill to him or her. Most hospitals or big medical offices will continue to treat you even after you discharge a medical debt to them. Some smaller offices may not treat you after you discharge a debt to them. If you want to pay a doctor you may want to wait until after you file. Paying one debt in favor of others could be considered an unfair preference and the bankruptcy trustee may want to collect a payment made to a creditor just before filing your case.
If you have a lot of medical debt in your bankruptcy, the trustee will want to know if you have to right to sue somebody for an injury or accident. If you do, this money is an asset of the bankruptcy estate whether you filed the case or not. The trustee could force you to file a case if it is legitimate. If you are considering bankruptcy and can sue someone for an injury or accident, you should discuss any case you might have with your bankruptcy attorney and your personal injury attorney if you have one.