Can I Discharge Medical Debt in Bankruptcy?

Facing medical debt can be overwhelming, but filing for bankruptcy can be a viable way to get relief from your creditors. 

Medical bills are considered unsecured debt, similar to credit card balances or personal loans, and under bankruptcy law, unsecured debts can be discharged in many cases. This means that once your bankruptcy case is completed, you are no longer legally obligated to pay the medical bills listed in your filing.

There isn’t a specific “medical bankruptcy” category, but in both Chapter 7 and Chapter 13 bankruptcy, medical debt can be included:

• In Chapter 7, medical bills can be wiped out entirely along with other unsecured debts after about 3–6 months, provided you qualify under the income means test.
• In Chapter 13, if you don’t qualify for Chapter 7 or want to keep certain assets, you’ll enter a repayment plan (usually 3–5 years) that includes medical debt, and any remaining balance that was unpaid may be discharged at the end. 

Minnesota also offers state-level protections that can work alongside bankruptcy. The Minnesota Debt Fairness Act strengthens consumer protections around medical debt by preventing automatic transfer of medical debt to a spouse, banning reporting of medical debt to credit bureaus, and adding exemptions that help people filing for bankruptcy. 

Keep in mind: to discharge medical debt in bankruptcy, you must list all debts accurately when filing. A co-liable spouse who doesn’t file may still be responsible for joint medical debt. 

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

Bankruptcy can provide a fresh start, but it can complex and needs the advice of a well-qualified legal team. Whenever you are ready to free yourself from your creditors and get your life back, reach out to Minnesota’s kindest and most helpful bankruptcy law firm at www.lifebacklaw.com. You will be so happy you did!