Medical bills can be a significant financial burden, especially for those who don’t have health insurance or have high deductibles. In some cases, medical bills can become so overwhelming, individuals may consider filing for bankruptcy as a way to manage their debt. 


If you are currently facing a similar struggle, you too may be wondering if bankruptcy can erase your medical debt and improve your financial situation. Let’s learn more about bankruptcy and medical bills, if medical debt can be cleared and the best type of bankruptcy to file. 


Bankruptcy and Medical Bills: How it Works


When filing for bankruptcy, medical bills are considered unsecured debt, which means they are not backed by collateral like a house or car would be. In most cases, unsecured debts are discharged or eliminated in bankruptcy, which provides significant relief to someone struggling to pay their medical bills. 


If you are looking to clear significant medical debt, there are two types of bankruptcy that you can file: Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, unsecured debts, including medical bills, are usually discharged entirely. This will allow you to have a fresh start while also eliminating other sources of debt like credit card bills. 


In Chapter 13 bankruptcy, you will enter into a payment plan to repay some or all of your debts, including medical bills, over a period of three to five years. Whatever is left at this time is usually discharged, which is why you only end up paying a portion back over time. 


Qualifying for Bankruptcy 


To qualify for Chapter 7 bankruptcy in NY, you must pass a means test, which determines whether you have enough disposable income to pay back your debts. If your income is below the median income in New York, you may be eligible for Chapter 7 bankruptcy. If your income is higher, you may still qualify for Chapter 13 bankruptcy. 


Meeting with a bankruptcy lawyer in New York is your first step. At The Law Office of William Waldner, you’ll have the opportunity to sit down and discuss your situation. We can help determine what type of bankruptcy you qualify for and if your medical bills can be discharged. 


It’s important to note that not all medical bills can be discharged in bankruptcy. For example, bills for medical services received within 90 days before filing for bankruptcy may not be dischargeable. During your consultation, we will discuss which medical bills can be discharged and which cannot. 


What to Expect During Bankruptcy


Filing for bankruptcy can be a complex process. Working with an experienced bankruptcy attorney in New York will make this experience easier, as they can guide you through each step of the process and provide adequate support. 


Keep in mind that you will also be required to attend credit counseling an by d provide documentation of your income, expenses and debts. Furthermore, the bankruptcy court will assign a trustee to oversee your case and manage your payment plan, if you receive one. 


During the bankruptcy process, you will be required to stay on top of payments and attend all required meetings and court hearings. Failure to do these things could result in dismissal of the case or other legal consequences. 


Rebuilding Your Credit After Bankruptcy


Bankruptcy can have a significant impact on your credit score, but it’s not the end of the road. With time and effort, you can rebuild your credit and improve your financial situation. The good news is that you won’t have creditors calling you, and you won’t be struggling to make your payments. You will have a fresh start and be able to start rebuilding your credit. 


One way to rebuild credit after bankruptcy is to establish a solid payment history by paying your bills on time and in full. Also, make sure you are monitoring your credit reports and disputing any errors or inaccuracies. These things do happen. Most importantly, be patient and give things time. Your credit score will come back. 


Schedule a Consultation with a Bankruptcy Attorney in NY 

Medical bills can be overwhelming, but filing for bankruptcy can provide relief and a fresh start. If you’re struggling with medical bills, it’s important to work with an experienced bankruptcy attorney to explore your options and determine whether bankruptcy is the right choice for you. Schedule a consultation with The Law Office William Waldner to learn more about filing a medical bankruptcy.c