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Medical Billing Statement with Clipboard

Your Options When Your
Medical Debt is Overwhelming

Oliva Law April 22, 2022

When you need expensive medical treatment or surgery, the cost of medical care may be your last concern because health is always our first priority. However, medical bills can mount over time, becoming an unmanageable burden for you and your family.

Millions of Americans struggle to pay their medical bills, which is why they may consider bankruptcy and other debt-relief options to eliminate medical debt. Depending on your circumstances, there may be several options to deal with overwhelming medical debt.

If you want to explore your options to get rid of burdensome medical debt, contact our experienced and compassionate bankruptcy attorney at Oliva Law. We will review your financial situation and determine what solution would work best for you. We have offices throughout Texas: Corpus Christi, Brownsville, Harlingen, McAllen and Laredo, Texas.

Will Bankruptcy Discharge Medical Debt?

Contrary to popular belief, there is no such thing as “medical bankruptcy,” a popular term used for bankruptcies limited to medical bills. Instead, you can discharge your medical debt along with other types of debts through Chapter 7 or Chapter 13 bankruptcies. Under bankruptcy law, medical debt is considered dischargeable debt, which can be eliminated by declaring bankruptcy.

However, filing for bankruptcy can have profound complications and significant consequences, which is why you may need to seek competent legal advice before declaring bankruptcy.

Which Chapters Can
Help With Medical Debt?

As mentioned earlier, you can eliminate some or all medical bills through both Chapter 7 and Chapter 13 bankruptcy because medical debt is considered general unsecured debt:

  • Chapter 7 bankruptcy. If you file for bankruptcy under this chapter, you can eliminate both medical debt and credit card debt. Therefore, filing for Chapter 7 bankruptcy may be a good option for those who paid for their medical care using a credit card. Unlike Chapter 13 bankruptcy, Chapter 7 does not require debtors to pay back any debts through a repayment plan. Before filing for Chapter 7 bankruptcy, you must pass the Means Test, which looks back at your last 6 months of income.

  • Chapter 13 bankruptcy. When filing for Chapter 13 bankruptcy, you pay your disposable income into a repayment plan for three to five years. How much debt you pay back depends on your income, budget, and the value of your non-exempt assets.

Medical debt is one of the leading reasons Americans file for bankruptcy. If you want to eliminate your medical debt, you should speak with a knowledgeable bankruptcy attorney to understand your options.

How a Skilled Bankruptcy
Attorney Can Help

If you are struggling with unbearable medical debt, you may have options to get rid of the debt and fix your financial situation. In some cases, an alternative to bankruptcy may be to negotiate a favorable settlement or manageable repayment plan with the healthcare provider. It is vital to consult with a skilled bankruptcy attorney to determine the best debt relief option for your specific situation.

Our bankruptcy attorney at Oliva Law has the necessary expertise to analyze your financial situation and walk you through your medical debt relief options. With an attorney on your side, you can make informed decisions about how you should proceed with your medical debt.

Legal Advocacy You Can Trust

At Oliva Law we understand that medical debt can place a burden on you and your family for years or decades. Ignoring the problem could turn your life upside down, which is why it is essential to explore your debt relief options.

Our bankruptcy attorney is dedicated to helping families overwhelmed by medical debt get their lives back on track. We provide effective and trusted legal advocacy to clients throughout South Texas. Contact our attorney today to discuss your particular case.