Questioning how you’re going to be able to pay off exorbitant medical bills? Attorney Holly H. Hines is a noted expert in the field of bankruptcy law. From her office in Massachusetts, she explains what beleaguered consumers should do when faced with these types of difficult situations.
Uninsured medical bills are one of the most common reasons why many people are forced to file for bankruptcy these days. Without having adequate health insurance in place, medical bills can become stifling for many folks.
For many people who have undergone unexpected medical surgeries without having health insurance, and are now forced to deal with increasing medical bills as a result, turning to bankruptcy as a way to alleviate that debt can really be what is seen as their only option.
When a consumer initially decides that he is going to file for bankruptcy, what typically happens is the petition is filed with the bankruptcy court. That petitions lists the debtor’s income and expenses, and it shows the court that the debtor typically has little disposable income left after the necessary expenses and bills have been paid for each month.
So in order to qualify for a bankruptcy, a debtor has to be able to show the court that he meets the requirements and that there is no other way for him to alleviate these debts without bankruptcy. Then, through the bankruptcy process, the debtor would have these debts discharged.
Under a Chapter 7 liquidation bankruptcy specifically, that would mean that the debtor is not required to pay these medical debts back including the medical bills that pushed him over the top in the first place.
When compared to other types of debt that people commonly have, medical bills are actually not usually as much of an issue to have discharged by the bankruptcy court.
In most cases, we will look at a window of about 90 days or so before a person filed for bankruptcy to see if there have been any abuses on the part of the debtor. If they were to use a credit card 90 days before to buy extravagant items or take a vacation that seemed to be a high expense, then that might seem to be abusive to the bank that is the holder of the credit card, and the court may not necessarily discharge that debt.
But as far as medical bills are concerned, those are not usually something that can be anticipated since someone does not know when an unexpected medical emergency is going to take place. So a debtor would not be able to plan ahead or know that he was going to have to end up filing for a bankruptcy as a result. So because of that, we do not usually have any problems getting medical bills discharged, and we haven’t had any of those debts contested.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
