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medical-debtMost of the time, a person files for bankruptcy because it is the last option for bills that cannot be paid. After all, a bankruptcy on your record can diminish your credit score and make it difficult to borrow money for items like a house or a car for years. When a person files for bankruptcy, it is because they have exhausted all other options. Unfortunately for many Americans, the thing driving them to file for bankruptcy is medical debt. According to CNBC, 66.5 of all bankruptcies filed in the United States between 2013 and 2016 were tied to medical issues such as high costs for medical care or taking time off of work for medical reasons. If you have found yourself in the precarious situation of too much medical debt, here are a few things you should know before you file for bankruptcy:

Your Medical Debt is Dischargeable in Bankruptcies

Here is the good news -- medical debt is dischargeable in both Chapter 7 and Chapter 13 bankruptcies. The type of bankruptcy you file for will entirely depend on your financial situation and which option would make more sense. A Chapter 7 bankruptcy would completely eliminate your medical debt, while a Chapter 13 bankruptcy would reorganize your debt into manageable payments.

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