Is Medical Debt Different From Other Types of Debt in Bankruptcy?

Anyone who is considering the possibility of filing for bankruptcy due in part to substantial medical debt may be wondering: is medical debt different from other types of debt in bankruptcy? And more specifically, is it possible to have medical debt discharged in bankruptcy, or do you need to go through a particular process when it comes to medical debt? To be clear, medical debt is treated like other unsecured debt in a personal bankruptcy case, including both Chapter 7 and Chapter 13 bankruptcy. Accordingly, if you are eligible to file for bankruptcy, you should be able to anticipate that you can have your medical debt discharged.

To be certain about your eligibility for bankruptcy and for a discharge, you should have an experienced bankruptcy attorney in Oak Park assess your circumstances. In the meantime, we can provide you with additional information about medical debt and why it is usually dischargeable in consumer bankruptcy cases in Illinois.

Only Certain Debts are Non-Dischargeable, or “Exceptions to Discharge”

Under the U.S. Bankruptcy Code, there are only certain types of debt that are non-dischargeable or that are identified as “exceptions to discharge” in consumer bankruptcy cases. The most common types of non-dischargeable debt include debts owed for family support (like spousal maintenance or child support), debts owed for recent tax debt and tax penalties, and debts owed as a result of certain civil lawsuit judgments involving personal injury and the debtor’s liability. Student loans are classified under the “exceptions to discharge” section of the U.S. Bankruptcy Code, but there is even an exception to the exception there — when a debtor can prove that it would be an “undue hardship” to have to continue making student loan payments, that debt, too, can be discharged.

Medical debt does not fall under the “exceptions to discharge” classification. In fact, medical discharge is one of the types of debt commonly discharged in bankruptcy cases.

Medical Debt is Like Credit Card Debt and Other Forms of Unsecured Debt

Medical debt is classified along with other types of unsecured debts, such as credit card debt, that can be eligible for discharge in a consumer bankruptcy case.

Whether you have hospital bills, surgery costs, laboratory bills, bills from doctor’s appointments, debt from medical devices or implants, or any other related bills, these can usually be discharged in consumer bankruptcy cases. Medical debt is one of the leading reasons that Americans file for bankruptcy and one of the most common types of debt discharged in Chapter 7 and Chapter 13 bankruptcy cases.

Contact an Oak Park Bankruptcy Lawyer

Anyone who is considering filing for personal bankruptcy should seek advice from an experienced attorney who can help. One of the dedicated Oak Park bankruptcy lawyers at our firm can assess your individual financial circumstances and can give you more information about how specific debts will be handled in a bankruptcy case, including medical debt. We are here to help you. Contact the Emerson Law Firm today for more information about the services we provide to consumers in the Oak Park area.



See Related Blog Posts:

Top Things to Consider About Student Loans and Bankruptcy

New Information on Debts That Bankruptcy Cannot Discharge

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