Medical debt is something that will impact almost every American during their lifetime. It doesn’t matter if you have no insurance or your insurance doesn’t cover the full cost, medical debt can pile up fast. For this reason medical debt is fairly common in bankruptcy cases.
Most medical debt will not report on your credit report, unless it has gone to collections. Therefore, to include medical creditors on your case you will have to either supply a bill to your attorney or know the clinic, hospital or other entity you owe the debt to. Most important is your attorney has the correct name, address and a best estimate of the amount owed.
Medical debt can be included in your bankruptcy discharge. Meaning, when your case discharge is granted your personal liability on the debt will be gone. This being said, keep in mind some clinic and hospitals take the stance that you may need to keep paying on your bill (even though it is discharged) to continue receiving services through the clinic/hospital. If this is the case, then you may need to voluntarily make payments, if you want to keep receiving services through that hospital or clinic.
If you are married and living with your spouse when medical debt was incurred, note that in Minnesota medical debt incurred by one spouse is the responsibility of the other spouse as well. Keep this in mind if only one of you will be filing bankruptcy. A possible scenario, if you file bankruptcy and your spouse doesn’t, your liability on the medical debt will discharge but your spouse may still owe.
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If you have medical debt or any other debt, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
