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Can You File Bankruptcy on Medical Bills? Understand Your Options
Can You File Bankruptcy on Medical Bills: What You Should Know First Can you file bankruptcy on medical bills? The
June 17, 2025
Can You File Bankruptcy on Medical Bills? Understand Your Options
Can You File Bankruptcy on Medical Bills: What You Should Know First
Can you file bankruptcy on medical bills? The short answer is yes. Medical debt is one of the most common reasons people in the U.S. seek bankruptcy protection.If you’re dealing with unpaid hospital bills, doctor charges, or insurance co-pays, bankruptcy may be one legal option to address medical debt, depending on your circumstances.
This guide explains how medical debt is treated in bankruptcy, which type of bankruptcy may be right for you, and what to expect throughout the process.
How Medical Debt Is Treated in Bankruptcy
Medical bills are considered unsecured debt, meaning they are not tied to an asset (like a house or car). That puts them in the same category as credit cards, payday loans, and personal loans. In many cases, unsecured debt may be addressed through Chapter 7 and Chapter 13 bankruptcy. depending on eligibility and case details.
Chapter 7 Bankruptcy for Medical Bills
Chapter 7 is one option individuals may consider when seeking to address medical debt through bankruptcy.
- The court issues an automatic stay, stopping collection calls, lawsuits, and garnishments.
- If a discharge is granted, eligible medical bills may be discharged through the Chapter 7 process, which often concludes within several months.
- Bankruptcy law does not set a specific dollar limit on unsecured medical debt that may be included, subject to court approval.
You must pass a means test to qualify, which compares your income to your state’s median income level.If your income falls below the applicable threshold, Chapter 7 may be available, depending on additional factors.
Chapter 13 Bankruptcy for Medical Bills
If you don’t qualify for Chapter 7 or want to protect assets (like a home with equity), Chapter 13 may be a better fit.
Under Chapter 13:
- You propose a 3- to 5-year repayment plan based on your income and debts.
- Medical bills are lumped into your unsecured debt category.
- In some cases, remaining eligible unsecured medical debt may be discharged after the repayment plan is completed.
This option may be considered by individuals who are behind on secured obligations while addressing other debts.
How Much Medical Debt Justifies Bankruptcy?
There’s no official threshold for how much medical debt is “enough” to justify filing bankruptcy. Instead, consider the following signs:
- You’re using credit cards to pay for health care
- You’ve been sued by a hospital or a doctor’s office
- Your wages are being garnished
- You’ve drained your savings and still can’t catch up
- You’re skipping essentials like food or rent to pay medical bills
If any of these sound familiar, it may be time to seriously consider filing.
Other Ways to Manage Medical Debt (Before Bankruptcy)
Before asking can you file bankruptcy on medical bills, you might try:
- Negotiating with providers: Many hospitals offer hardship discounts or payment plans
- Applying for financial aid: Some nonprofit hospitals are legally required to provide charity care
- Using a debt management plan: A credit counseling agency may help consolidate bills into a single monthly payment
Still, if these options don’t reduce your burden, bankruptcy could offer a long-term solution.
Discharging Medical Debt Through Bankruptcy: Your Path Forward
Medical debt can be crushing, but it doesn’t have to be permanent. Filing for bankruptcy is a legal process that may help address qualifying medical debt under federal law. Whether Chapter 7 or Chapter 13 is appropriate depends on individual financial circumstances.
Get Help with Medical Debt and Bankruptcy Options Today
Still wondering, can you file bankruptcy on medical bills in your situation? The answer depends on your income, assets, and total debt load. A qualified bankruptcy attorney can review your situation and explain available legal options based on your financial circumstances.
Visit BankruptcyAttorneys.net to request a free evaluation and connect with a legal professional who understands how to handle medical debt through Chapter 7 or Chapter 13 bankruptcy.
If medical debt is creating ongoing financial stress, speaking with a legal professional may help clarify your available options.
Frequently Asked Questions (FAQs)
1. Can you file bankruptcy on medical bills and credit card debt at the same time?
Yes. Both are unsecured debts and can be included in your bankruptcy case.
2. Will my doctor stop treating me if I file bankruptcy on their bills?
While rare, some private practices may choose not to continue care after bankruptcy. Hospitals usually will.
3. How much medical debt do I need to have to qualify for bankruptcy?
There is no minimum. If the debt is unmanageable and affecting your finances, bankruptcy may be appropriate.
4. Can I include old medical bills in bankruptcy?
Yes. All qualifying medical debt, regardless of age, should be listed in your bankruptcy paperwork.
5. Does bankruptcy stop medical collections and lawsuits?
Yes. The automatic stay prevents creditors from suing or garnishing your wages during the bankruptcy process.
Key Takeaways
- Yes, you can file for bankruptcy on medical bills
- Medical debt is dischargeable through Chapter 7 or Chapter 13
- Chapter 7 wipes out the debt quickly; Chapter 13 spreads repayment
- No minimum debt amount is required to file
- Bankruptcy stops collections, lawsuits, and garnishments
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