Can medical bills be discharged in Chapter 7? Many people struggle to repay medical bills following an extended illness or disability which precludes them from working or reduces their ability to work. Medical bills are among the primary causes of bankruptcy filings in the United States.
What is a discharge and why is it important? A discharge is an order of the bankruptcy court that essentially states that you are no longer legally responsible for your debts. That’s it. You will no longer be required to pay any debts that are properly listed in your bankruptcy, whether you filed for Chapter 7,11, or 13.
There is no special exemption for medical bills in the bankruptcy law and therefore, once all of the medical bills are listed in the Chapter 7, 13, or 11, they can be discharged. Each bankruptcy Chapter has its own requirements and operates differently. However, the result will be that medical bills can be discharged. Learn more about bankruptcy requirements…
Yes, medical bills may be discharged in Chapter 7 or Chapter 13. In Chapter 7, medical bills will be discharged with all of debtor’s other general debts.
In Chapter 13, medical bills will be repaid the same percentage as all of debtor’s other general debts.
Keith F. Carr is an attorney practicing Bankruptcy, Divorce, and Estate Planning. Attorney Keith F. Carr has over 30 years experience. Founder of Law Offices of Keith F. Carr, located in San Francisco, San Jose, and Palo Alto, Ca.