Will Chapter 7 and Chapter 13 Bankruptcy Discharge Medical Bills?

Will Chapter 7 and Chapter 13 Bankruptcy Discharge Medical Bills?

I’ve been getting this question about bankruptcy a lot lately for some reason. So much so that I feel it’s time to write a blog post about it. I don’t know what bad information about bankruptcy is going around now, but I’ve had several clients and potential clients mention that they’ve heard recently that medical debt is not dischargible in bankruptcy. This is incorrect.

In bankruptcy, medical debt is considered a non-priority unsecured debt. As a result, a chapter 7 discharge would apply to medical debt. So if you file chapter 7 bankruptcy, qualify, and fulfill all court requirements, the discharge would apply to the medical debt. If you file a chapter 13 bankruptcy and successfully fulfill all court requirements and complete all plan payments, the discharge (assuming it wasn’t a 100% chapter 13 bankruptcy plan) would apply to your medical bills. Of course, all adversarial considerations would apply to any discharge. However, assumming that there are none, medical debt is absolutely dischargible in chapter 7 and chapter 13 bankruptcy.

Feel free to call 480-355-1377 to speak to an experienced Arizona bankruptcy attorney.