Medical Debts and Bankruptcy

Generally medical bills/ debts are dischargeable (forgivable) in Bankruptcy.

There are many ways to resolve financial issues related to medical debts, including Chapter 7, Chapter 13, and debt settlement and other options; and an attorney can advise which option is best for you.

If you are struggling with medical debts, here are a few things to keep in mind specific to medical debts and Bankruptcy:

1. Make sure all of the medical debts are included in the Bankruptcy.

a. Be sure to list all medical providers/ hospitals. For example, if you have surgery, you might get separate bills from the hospital, anesthesiologist, labs, etc. and you should try to list all of them if possible.

b. Save your bills to help make a list of your medical debts and give them to your attorney.

c. As part of the Bankruptcy process, your attorney will likely pull your credit report to supplement your list of creditors and/ or help you obtain a list of creditors. If the medical debts are not showing up on your credit report, let your attorney know about any medical debts that might be missing from your credit report.

2. Pre-Bankruptcy medical debts vs. post-bankruptcy medical debts.

a. Normally any medical debts incurred prior to filing Bankruptcy are dischargeable; and any medical debts incurred after to filing Bankruptcy are not dischargeable.

b. Once you file for Bankruptcy, any medical treatments after filing will not be included in your Bankruptcy. This might be important to know for planning purposes. For example, if you have major surgery coming up that will not be fully covered by insurance, you might want to wait to file your case until after the surgery so you know the full extent of the medical costs and how long you are going to be recovering, out of work, etc. and make sure any medical debts and related expenses might be included in your Bankruptcy. If you have ongoing medical issues, you might not wait to file. For example, if you have diabetes and require ongoing treatments, you probably would not wait to file because there is no known/ imminent end date.

c. Although post-Bankruptcy medical bills are not dischargeable, you should still let your attorney know about any medical issues and expenses. Your medical expenses, including medications, are usually allowable expenses which might be helpful with your Bankruptcy case, particularly concerning disposable monthly income which your attorney can discuss further with you.

3. Talk to your medical provider about their policy on continuing treatment.

a. Every hospital and doctor’s office has different policies concerning debts included in Bankruptcy. Most hospitals might forgive the old debts but say you need to pay for any treatments going forward. Some might not see you anymore unless the bills are paid. If you need to continue to see a specific doctor/ specialist, let your attorney know. You might want to talk to your doctor about your situation and possibly set up a payment plan.

If you have questions about your medical debts, one of our attorneys can help.

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