Medical Debt and Discharge
The bankruptcy discharge, whether obtained by filing a chapter 7 petition, or obtaining discharge through at the completion of a chapter 13 plan, wipes the slate clean of general unsecured non-priority debt. See https://www.law.cornell.edu/uscode/text/11/524. What is general unsecured non-priority debt? Debt that is not secured by a lien, or an item such as personal property or real property. General unsecured non-priority debt is generally personal loans, unsecured lines of credit, credit cards, and medical debt.
Medical debt is most commonly not secured by any security such as a house or vehicle (although some may think their bodies are security), and is therefore an unsecured non-priority debt which is dischargeable in bankruptcy. the most common types of medical debts that are dischargeable are bills for office visits, co-pays, emergency room visits, hospital stays, etc. There are exceptions where a medical provider has obtained a lien for there medical services. This is common in a personal injury case where there is a substantial amount of medical damages.
If you have a substantial amount of medical debt and are considering filing for bankruptcy protection, please contact us for a free evaluation at 480-355-1377.
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