Ever found yourself in the tight grip of medical bills, your heart pounding as you stare at a number that seems to grow larger every time you blink? You’re not alone. For many Americans, the reality of dealing with outstanding medical bills is all too familiar. It’s like standing on a sinking ship with no land in sight.

This journey can be scary, confusing and leave you feeling helpless – but hold onto hope! This post aims to serve as your life raft amidst this stormy sea of debt. We’ll dive into what bankruptcy means for your medical debts and explore ways to navigate these turbulent waters.

Let’s dive into different payment options that could potentially avoid bankruptcy. We’ll also look at how filing might affect your access to medical facilities and treatments. You’ll learn about the role attorneys can play in this process, and finally, we will unpack various types of bankruptcies that are suitable for managing such situations.

Understanding Bankruptcy and Medical Bills

When you’re in a financial hole due to medical bills, filing for bankruptcy may appear as your only option. The staggering cost of healthcare is now estimated to be in the trillions annually.

In fact, as many as 62% of bankruptcies include significant medical debt. This is often considered an unsecured debt when it comes to bankruptcy proceedings.

The Nature of Medical Debt in Bankruptcy

Prioritizing debts during the bankruptcy process isn’t easy. Some debts get preferential treatment (priority debts), while others don’t (non-priority).

Luckily, medical bills usually fall into the non-priority category. This means they may be completely wiped out if you file for Chapter 7 or included in your repayment plan under Chapter 13.

Exploring Payment Options for Medical Bills

But don’t despair. Before making such a life-altering decision, explore other alternatives.

Negotiating with Hospitals and Doctors

Hospitals and doctors can be more flexible than you think. They’d rather get some money from you instead of none at all if you file for bankruptcy. Therefore, they may agree to lower payments or set up manageable payment plans.

You could also seek help from nonprofit credit counseling companies who can guide you through this process effectively.

Bear in mind that almost one-third of GoFundMe campaigns aim to raise funds to pay off medical debt – showing how common this problem is. Remember, although it’s a difficult situation, you’re not by yourself.

Impact of Bankruptcy on Access to Hospitals

Let’s explore how filing for bankruptcy can affect a person’s ability to access certain hospitals or receive specific treatments.

Filing for Bankruptcy and Access to Hospitals

Filing for bankruptcy can have surprising effects, like changing your access to certain hospitals or treatments. When you’re already dealing with the stress of medical bills and potential bankruptcy, this is a crucial aspect that needs attention.

Assistance Programs and Access to Healthcare

In certain circumstances, declaring bankruptcy may obstruct access to specific medical facilities. However, assistance programs often help those who’ve filed for bankruptcy. These resources aim to ensure everyone gets necessary health care regardless of their financial situation.

Insurance Coverage and Aid Programs

But there’s hope. In 2023 alone, about 417,000 Americans filed for bankruptcy. Many still received needed medical treatments through insurance coverage or aid programs like GoFundMe. Filing doesn’t mean forfeiting quality health care.

You Are Not Alone

The journey may be tough but remember; you are not alone in this fight against mounting medical debts and the quest for essential healthcare services.

The Role of Bankruptcy Attorneys in Medical Debt Cases

Bankruptcy attorneys play a crucial role when you’re buried under medical debt. They can guide you on whether filing for bankruptcy is a good choice or not.

Choosing a Bankruptcy Attorney

An experienced attorney will help you understand the bankruptcy process, from attending credit counseling to getting your debts discharged. Their expertise becomes vital as medical bills are considered unsecured debts and need special handling during proceedings.

If it’s viable to file for bankruptcy, they’ll suggest which chapter would be most beneficial – Chapter 7 or Chapter 13. Each has its own advantages depending upon your disposable income and types of debt.

A Maine Law Review study shows that Americans who took legal advice were better equipped to navigate their way through this complex situation, thereby underscoring the importance of hiring an adept attorney.

Types of Bankruptcy for Medical Debt

If you’re buried in medical debt, filing bankruptcy might be a lifeline. Two common options are Chapter 7 and Chapter 13.

Discharging Medical Debts in Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often called liquidation, lets you discharge most unsecured debts like credit card bills and, yes, your mountain of medical expenses too. But remember this isn’t an easy way out; it can significantly impact your credit score.

Repayment Plans in Chapter 13 Bankruptcy

The other good choice is Chapter 13 bankruptcy. Unlike its sibling above that wipes the slate clean, here you get to repay part or all your debts through a court-approved repayment plan while keeping assets like home or car safe. It’s more about reorganizing than erasing but still gives relief from hospital bills’ burden.


Medical bills are daunting. They’re the iceberg that threatens to sink your financial Titanic. But you’ve now got some strategies up your sleeve.

Filing for bankruptcy, while serious, can provide relief from unmanageable medical debt. You know how this process works and its impact on medical bills.

Negotiation is key when dealing with hospitals or doctors about payment plans. Knowledge of Chapter 7 and Chapter 13 bankruptcies is a weapon in your arsenal too.

You’ve also learned the value an experienced attorney brings to these cases – don’t overlook their role!

Your journey navigating this sea may be tough, but remember: knowledge is power! With these tools at hand, you’ll make it through the stormy waters ahead.

Schedule your free consultation with The Law Office of William Waldner and find out if bankruptcy can help you clear your medical debt.