Medical debt is now one of the most common reasons American consumers file for bankruptcy. An unexpected illness or injury can not only be debilitating to one’s health it can also wreak havoc financially. Medical bills can quickly pile up and get out of hand. For many Americans, bankruptcy can be the only way out of the grasp of crushing medical debt.

Because medical bills are unsecured debts, they are generally dis-chargeable in a bankruptcy proceeding. This means that much like credit card debt, medical debt can be wiped out by filing for bankruptcy. Both Chapter 7 and Chapter 13 bankruptcies will discharge medical debt at the end of the process.

Medical Debt in Chapter 7 Bankruptcy

A Chapter 7 bankruptcy can typically eliminate medical debt for a consumer, however you must qualify to file a Chapter 7 bankruptcy. Qualifying for a chapter 7 depends on a number of factors such a debtor’s disposable income, household size, as well as standard calculated by the Office of the U.S. Trustee. Please refer to our Chapter 7 Page for more information.

Medical Debt in Chapter 13 Bankruptcy

A Chapter 13 bankruptcy requires a debtor to pay off a percentage of their debts in a 60 month payment plan. At the end of the payment plan, the debtor receives a discharge of their debts. Please refer to our chapter 13 page for more information.

To find out how your medical debts can be eliminated, contact the Law Offices of David I. Pankin at 888-529-9600. David I. Pankin is a Long Island bankruptcy attorney with offices conveniently located in Brooklyn, Manhattan and Long Island. Mr. Pankin has been helping consumers get a financial fresh start for over 20 years. Call for your free consultation today.