Medical bills are our favorite thing to hate. With people in the US owing at least $220 billion in medical debt alone, nearly 41% of adults have some form of health care debt. When that debt becomes unbearable, many people consider bankruptcy a form of relief.
Even though medical bills are dischargeable in bankruptcy, one annoying caveat is Minnesota Statue 519.05. Common sense would have us believe that whoever incurs a debt is liable for it. Anyone else who isn’t involved should be safe. This is generally the case, except for those pesky medical debts.
Until recently, Minnesota statute 519.05 stated that a person’s medical debt liability could be automatically transferred to their spouse if the debt was incurred during the marriage. Over the years, this has caused quite a few difficult situations, especially when only one person in a marriage wants to file bankruptcy. Can you imagine having no debt to your name but still having to file bankruptcy because your spouse’s medical debt collectors could come after you?
Thankfully, this unfair practice is changing. With the passing of the Minnesota Debt Fairness Act, Minnesota Statute 519.05 is getting a much-needed amendment. As of August 1, 2024, married couples can no longer be held accountable for their spouse’s medical debts.
Along with the medical debt amendment, the Minnesota Debt Fairness Act will modify the current bankruptcy exemptions to better reflect the current state of the economy, but that’s a topic for another blog!
Call Now For A Free Strategy Session With A MN Bankruptcy Lawyer
Do you have questions about medical debt or bankruptcy in general? We can help! Here at LifeBack Law Firm, we do the heavy lifting for you to ensure a stress-free bankruptcy. When the time is right, or when you are ready to get your life back, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
