What is a "Medical Bankruptcy"? | Vancouver, WA

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What is a “Medical Bankruptcy”?

What is a Medical Bankruptcy?

Actually, that is a trick question. There is no such thing under the law as a “medical bankruptcy.”

Medical Bankruptcy?

Medical Bankruptcy?

There is no option under the Bankruptcy Code to file bankruptcy solely on medical debt. Any person filing bankruptcy (a “debtor”) must list all of their debt – credit cards, personal loans, taxes, etc. Credit card debt is treated just like medical debt. So, when the debtor receives a discharge of the medical debt, they also receive a discharge of the credit card debt. (Likewise, there is no way to file bankruptcy just on credit card debt or just on business debt.)

If a person only has medical debt, then I suppose they might describe their bankruptcy as a “medical bankruptcy”. However, there is no way for a person owing, for example, credit cards and medical debt to file bankruptcy only on the medical debt.

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If you have medical debt that is causing you a problem, feel free to contact us to set up a free initial consultation. We will help you figure out your options to deal with it.

Rob Russell2014-12-29T09:16:10+00:00

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