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Bankruptcy due to Medical Debt

Posted by on Apr 2, 2015 in Finance | 0 comments

Despite the approval and implementation of The Patient Protection and Affordable Care Act, more popularly known as the ObamaCare since March of 2010, the cost of health care and health care services is still high. This, in turn, has not done much to reduce the number of people filing for Chapter 7 bankruptcy in order to help eliminate their stacking medical debt.

Under the Chapter 7 bankruptcy, medical debt is considered a non-priority unsecured debt. This would mean that the medical debt is not a perceived priority provided that the trustee is able to make payments to the creditors, and even if only a portion of the debt is paid during the bankruptcy and the discharge is given by the court, the remainder of the debt will be completely wiped out. Fortunately, there is no limit given on the amount of medical debts, but the requirements to qualify you for a Chapter 7 bankruptcy should still be met.

Always remember that the bankruptcy only wipes out the debts that occur during the filing of the bankruptcy. The website of bankruptcy lawyer Erin B. Shank, PC states that any debt acquired after the bankruptcy has been filed will not be considered a part of the ongoing bankruptcy. It is a better option to delay your filing for a bankruptcy if you think there is still a possibility of adding more medical debt to your present debts. However, you must also remember that you have certain limitations on the number of times you will receive a discharge following a bankruptcy filing as stated in the bankruptcy law limits. If you are still continuing your medical treatment and obtaining more debts, it would be a wise decision to delay your bankruptcy filing. Talk with a bankruptcy lawyer to weigh your options and determine which alternative will best work for your situation.

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