Chapter 13 bankruptcy helps by reorganizing debt to make payments more manageable. Unlike Chapter 7, debts aren't immediately discharged with Chapter 13. Instead, you're set up on a payment plan to help you tackle them. However, medical bills aren't treated with the same priority as other debt types, so you won't have to fully repay the balance in the three to five years you have for reorganization.

Bankruptcy filings can be complicated. The Craig Black Law Firm helps simplify the process for clients. If you're considering a bankruptcy filing, I can help you through each stage of the process. Give me a call at 678-888-1778 or fill out this confidential online form, and I'll be in touch.

Medical Bills and Bankruptcies

Medical debt is a serious problem in the U.S. About 14 million adults owe more than $1,000 in medical debt, with 3 million adults owing $10,000 or more.

If you have mounting medical bills, bankruptcy could be a solution. Unless you qualify for Chapter 7, though, you'll still be responsible for repaying it. With Chapter 13, your medical debts will be combined into a repayment plan that has you making regular payments on all your bills.

With medical bills, the timing of your bankruptcy filing is important. Unlike other types, you have little control over medical debt. If you have an ongoing condition that might require surgery in the coming weeks or months, it's better to wait to file until you've stabilized.

Prioritizing Medical Bills

In Chapter 13 bankruptcy, debts are separated into priority and nonpriority debts. Priority debts include child support and court judgments, and those will need to be paid in full during the three to five years you'll work on a repayment plan.

The court will decide how much you're required to pay on your medical bills each month. During the three to five years you're on a repayment plan, the court will issue a stay that prevents debt collectors from taking action against you for late payments. That also means you won't have to deal with harassing phone calls and mail from your debtors.

Discharging Your Medical Debt

During the three to five years, you won't have to pay off your medical debt completely. You'll be expected to make monthly payments as directed by the court, but in the end, you'll likely have a balance remaining.

The good news is, at the end of a Chapter 13 bankruptcy, your remaining nonpriority debts will be discharged. That means you'll simply need to stay on top of payments and follow all other parts of the order, including attending financial counseling, and you'll be out from under your debt.

The Craig Black Law Firm and Medical Bills

At the Craig Black Law Firm, clients are my top priority. I specialize in bankruptcy cases and can help you navigate the complicated laws surrounding Chapter 13 and medical bills. Call 678-888-1778 to discuss your case with me and find out how I can help. If you'd prefer, you can instead complete this confidential online form to request a callback.