Can I Discharge COVID-19 Medical Debt in Bankruptcy?
The COVID-19 pandemic has resulted in millions of job losses, which in turn has left millions of Americans unable to pay their bills and mortgages. In some cases, struggling debtors are also dealing with long-term health problems as a result of the coronavirus on top of substantial medical debt. For many of these debtors, there are questions and concerns about how to handle the debt they are facing and whether it is possible to discharge medical debt from COVID-19 hospital stays and doctor’s appointments through consumer bankruptcy. In most cases, medical debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy cases.
If you have questions about discharging medical debt related to COVID-19 in a personal bankruptcy case, you should seek advice from one of the experienced Oak Park consumer bankruptcy attorneys at our firm.
COVID-19 is Resulting in Medical Debt for Consumers
When a person is diagnosed with COVID-19 and has a moderate or severe case of the virus, hospitalization may be necessary. According to a recent report from ABC Action News, COVID-19 is leaving patients across the country with “staggering medical bills.” For example, the article discusses one patient’s medical bills after spending 75 days in the hospital due to COVID-19, with a majority of those days in the ICU. For 50 of the days spent in ICU, the patient was under sedation. The total hospital bill “before adjustments was a staggering $3.4 million.” While this might seem like an extreme scenario, patients across the U.S. are receiving shocking medical bills for COVID-19 hospitalizations and treatment.
Data from FAIR Health, an independent nonprofit, looked at private insurance claims related to COVID-19 hospitalizations and determined that the median amount that a patient owed, after insurance, “range[d] from about $17,000 to $24,000 depending on age group.” For people who require a ventilator and ICU care, “that hospital bill can run up . . . above $90,000.” In short, becoming ill with a severe case of COVID-19 can be extremely expensive financially.
Medical Debt Can be Discharged in Bankruptcy
When you have significant medical debt from a severe case of COVID-19, you should know that your medical debt likely can be discharged in a consumer bankruptcy case. While there are some types of debt that are not dischargeable in a consumer bankruptcy case and some types of debt can be quite difficult to discharge, medical debt is commonly discharged in Chapter 7 and Chapter 13 bankruptcy cases.
Chapter 7 bankruptcy cases can result in a much faster discharge of medical debt than Chapter 13 bankruptcy cases, but you will need to show that you are eligible for Chapter 7 bankruptcy by passing the “means test.” You should seek advice from a consumer bankruptcy attorney about your eligibility for Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Contact an Oak Park Consumer Bankruptcy Attorney
Do you have questions about discharging medical debt through consumer bankruptcy? One of our experienced Oak Park bankruptcy lawyers can speak with you today about your case. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Can a Debt Collector File a Lawsuit Against Me for Old Debt?
Bankruptcy Filings at Lowest in 15 Years
If you have questions about discharging medical debt related to COVID-19 in a personal bankruptcy case, you should seek advice from one of the experienced Oak Park consumer bankruptcy attorneys at our firm.
COVID-19 is Resulting in Medical Debt for Consumers
When a person is diagnosed with COVID-19 and has a moderate or severe case of the virus, hospitalization may be necessary. According to a recent report from ABC Action News, COVID-19 is leaving patients across the country with “staggering medical bills.” For example, the article discusses one patient’s medical bills after spending 75 days in the hospital due to COVID-19, with a majority of those days in the ICU. For 50 of the days spent in ICU, the patient was under sedation. The total hospital bill “before adjustments was a staggering $3.4 million.” While this might seem like an extreme scenario, patients across the U.S. are receiving shocking medical bills for COVID-19 hospitalizations and treatment.
Data from FAIR Health, an independent nonprofit, looked at private insurance claims related to COVID-19 hospitalizations and determined that the median amount that a patient owed, after insurance, “range[d] from about $17,000 to $24,000 depending on age group.” For people who require a ventilator and ICU care, “that hospital bill can run up . . . above $90,000.” In short, becoming ill with a severe case of COVID-19 can be extremely expensive financially.
Medical Debt Can be Discharged in Bankruptcy
When you have significant medical debt from a severe case of COVID-19, you should know that your medical debt likely can be discharged in a consumer bankruptcy case. While there are some types of debt that are not dischargeable in a consumer bankruptcy case and some types of debt can be quite difficult to discharge, medical debt is commonly discharged in Chapter 7 and Chapter 13 bankruptcy cases.
Chapter 7 bankruptcy cases can result in a much faster discharge of medical debt than Chapter 13 bankruptcy cases, but you will need to show that you are eligible for Chapter 7 bankruptcy by passing the “means test.” You should seek advice from a consumer bankruptcy attorney about your eligibility for Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Contact an Oak Park Consumer Bankruptcy Attorney
Do you have questions about discharging medical debt through consumer bankruptcy? One of our experienced Oak Park bankruptcy lawyers can speak with you today about your case. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Can a Debt Collector File a Lawsuit Against Me for Old Debt?
Bankruptcy Filings at Lowest in 15 Years
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