One of the most common reasons people schedule a consultation with a bankruptcy lawyer and initiate a petition is due to medical debts. If you want to eliminate medical bills bankruptcy, it’s important to understand how your debts are categorized when you file. Certain debts receive priority treatment and cannot be eliminated through bankruptcy, such as student loans and taxes. However, medical debt is not one of them. Medical bills are typically classified as unsecured debts, similar to credit cards.
This classification means they don’t get priority treatment and can often be discharged by filing for bankruptcy. Depending on the type of bankruptcy you qualify for, you may be able to eliminate medical bills bankruptcy by filing for Chapter 13, which is more complicated, or Chapter 7, which is the most common. A Chapter 7 discharge will wipe out medical bills along with other unsecured debts, with no limit to the amount that could be discharged. In Chapter 13, your medical bills are grouped with other general unsecured debts into a repayment plan. The amount paid to creditors depends on your income, expenses, and any non-exempt assets.
Each creditor receives a portion of the total payment allocated to these debts in the plan. You may not qualify for Chapter 13 if your medical bills and other debts exceed the allowed limits. This is why scheduling a consultation with an experienced bankruptcy attorney is essential. They can advise you on exempt and non-exempt assets, helping you feel confident about your options and how to eliminate medical bills bankruptcy effectively.
By consulting a Jacksonville bankruptcy attorney, you’ll better understand what’s required to get started. A skilled attorney can guide you in protecting your interests and ensure you take the correct steps if you’re considering filing for bankruptcy in Jacksonville, Florida. Taking action sooner rather than later can make a significant difference in successfully managing and discharging your medical debts.