Roseville Bankruptcy

Medical Bills

With the high cost of medical insurance and medical care, it’s easy to quickly amass considerable medical debt. Fortunately, chapter 7 bankruptcy can eliminate unpaid hospital bills quickly and for very little cost. However, not everyone qualifies for chapter 7 bankruptcy.

Unsecured Debt

Medical bills are dischargeable in bankruptcy as unsecured debt. Just like credit cards, medical debt is general unsecured debt that falls within the scope of a chapter 7 bankruptcy discharge order.

Who Owns The Medical Debt

Part of filing chapter 7 bankruptcy is listing creditors and their addresses. When it comes to old medical debt, figuring out who currently owns the collection account can be challenging. Simply put, your old medical bills may list the original creditor or collection agency, but that account could have been sold in the interim. In addition, credit reports frequently list credit card accounts, but for some reason, old medical debt rarely appears. If you think that medical bills are missing from your credit report, even listing a last known creditor is better than not reporting the account.

Do You Qualify For Chapter 7 Bankruptcy

While chapter 7 bankruptcy is an excellent way to eliminate medical bills, not everyone qualifies for chapter 7 bankruptcy. Moreover, even if you qualify for chapter 7 bankruptcy, you may not want to file under that chapter if you would lose assets.

To qualify for chapter 7 bankruptcy your income for the past 6 months must fall below a certain threshold that is determined by the median household income for a household of your size. If your income exceeds that threshold and you don’t pass the means test, you probably won’t qualify for chapter 7 bankruptcy. However, you may still qualify for chapter 13 bankruptcy.

Even if you qualify for chapter 7 bankruptcy you may not want to file if you have significant assets. In chapter 7 bankruptcy the Trustee can sell assets that are not protected by exemption laws. Accordingly, individuals with significant assets or who own real estate may not want to file chapter 7 bankruptcy to eliminate medical debt. In those cases, chapter 13 bankruptcy where clients can keep their assets may be a better option. Speak with a bankruptcy attorney to learn whether you can protect your assets in chapter 7 bankruptcy and eliminate your medical debt.

Sacramento Law Group LLP is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Our services, benefits and assistance may involve and are with respect to bankruptcy relief under Title 11 of the United States Code. Adam Garcia is responsible for this communication. ADVERTISEMENT. By Adam Garcia on Google+
*$900 Chapter 7 Bankruptcy Fee Disclaimer: While most cases qualify for the above fee, some cases are complex. Consequently, the above fee is only a sample fee (not a specific or guaranteed fee) and is subject to change at any time due to the necessity of charging more for complex cases. The sample chapter 7 fee represents the typical fee for a simple no-asset chapter 7 case. The $900 fee is only available to residents of the following counties: Sacramento, Placer, Yolo, Solano and San Joaquin. Residents of other counties may be charged more.