Coral Springs Medical Debt – Can I Get Rid Of It In A Chapter 7 Bankruptcy?

On behalf of Bankruptcy Law Firm of Clare Casas on Friday, May 13, 2011.

When bankruptcy is mentioned, many automatically assume that the rising number of bankruptcies can be blamed on poor personal money management and over-spending with credit cards. However, statistically and from what I see in real life, the major bankruptcy driver for many tends to be uninsured medical costs for health care or as a result of an unexpected illness or injury.

Another contributing factor that I’ve experienced first-hand is that medical providers are becoming increasingly inflexible with their co-payments and other accounts receivables. In the past few years, the medical industry has started to use aggressive collection agencies on minor amounts ($100 or less). Once collection fees are added, a minor debt can turn into several hundred dollars and countless phone calls, letters and other forms of abuse. To those facing chronic illness or serious health concerns, it can be debilitating. When you’re ill or in poor health, I strongly feel that your first and only priority is to get better.

The good news is that a Chapter 7 bankruptcy can eliminate your medical debt completely. Medical bills are a type of unsecured debt, meaning none of your property was pledged as collateral for it. A Chapter 7 Bankruptcy can have all medical bills: including hospital or doctor charges, dental bills, lab bills, and diagnostic charges wiped out. Consulting with a bankruptcy attorney is your first step in finding out if you can eliminate your medical debt through bankruptcy.