Medical bills can pile up quickly. It does not take many illnesses or visits to the hospital before you have accrued tens of thousands of dollars in medical debt. Some people choose to use credit cards to pay off these bills, but then they are left with credit card debt. If you have an astounding amount of medical debt, there are two different types of bankruptcy you could file to help alleviate your bills.
Chapter 7 Bankruptcy
For individuals who have a low enough disposable income, a Chapter 7 bankruptcy may be possible. Under this type of bankruptcy, medical bills are completely wiped out. This also includes any credit card debt that has occurred due to paying off medical bills with a credit card.
Chapter 13 Bankruptcy
If you do not qualify for a Chapter 7 bankruptcy, then you must file for a Chapter 13. Under this bankruptcy, your medical bills are not wiped out but a repayment plan is agreed upon to repay a portion of your unsecured debt. This can help to alleviate the number of medical bills you have hanging over you.
If you are considering filing bankruptcy to help alleviate medical bills, you should learn more about the legal implications and which type of bankruptcy you would qualify for. Call The Law Offices of Paul McElrath to learn more about filing bankruptcy.