Medical bankruptcy is a common unofficial term that indicates one of the reasons why
people declare bankruptcy. It occurs when someone cannot afford to pay for the health care costs after
treating an injury or disease.
What can you do if the medical bill exceeds your ability to pay? You can file for bankruptcy
under the Chapter you are eligible for.
Chapter 7 Facts:
- Under this Chapter, there is no set limit regarding the amount of debt one may have.
However, one qualifies if their earnings do not surpass the state’s medium income.
- It implies the liquidation of the debtor’s assets in order to pay creditors and the exoneration of
the remaining debts. There is no repayment plan; hence you can keep for yourself what you earn in the
future.
- It remains on the debtor’s credit report for 10 years.
Chapter 13 Facts:
- Under this Chapter, the amount of debt is limited.
- It basically provides an alternative to those who want to keep their property. It implies a
supervised repayment plan that extends from 3 to 5 years.
- It remains on the debtor’s credit report for 7 years.
Anyone can face health care bills that they cannot pay, even insured individuals. Insurance
may simply not cover the bill for hospitalization or certain treatments may be too expensive to be
covered by it. Therefore, filing for medical bankruptcy is very usual and seems to be the best or only
answer for someone who has become overwhelmed by medical debt.
Medical bankruptcy is a common unofficial term that indicates one of the reasons whypeople declare bankruptcy. It occurs when someone cannot afford to pay for the health care costs aftertreating an injury or disease.
What can you do if the medical bill exceeds your ability to pay? You can file for bankruptcyunder the Chapter you are eligible for.
Chapter 7 Facts:
- Under this Chapter, there is no set limit regarding the amount of debt one may have.However, one qualifies if their earnings do not surpass the state’s medium income.
- It implies the liquidation of the debtor’s assets in order to pay creditors and the exoneration ofthe remaining debts. There is no repayment plan; hence you can keep for yourself what you earn in thefuture.
- It remains on the debtor’s credit report for 10 years.
Chapter 13 Facts:
- Under this Chapter, the amount of debt is limited.
- It basically provides an alternative to those who want to keep their property. It implies asupervised repayment plan that extends from 3 to 5 years.
- It remains on the debtor’s credit report for 7 years.
Anyone can face health care bills that they cannot pay, even insured individuals. Insurancemay simply not cover the bill for hospitalization or certain treatments may be too expensive to becovered by it. Therefore, filing for medical bankruptcy is very usual and seems to be the best or onlyanswer for someone who has become overwhelmed by medical debt.

Filing for Medical Bankruptcy – The Best Solution to Overwhelming Medical Debt