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Can you discharge medical debt in bankruptcy?

If you need medical treatment, the bills involved are not first on your mind. You are probably focusing on getting better. You will deal with the bills later. Unfortunately, the bills start to come quickly and you have to start paying. If you are unable to do that, you will incur medical debt and the amount will possibly increase over time.

Interestingly, from the perspective of bankruptcy law, medical debt is not considered a priority. In contrast, other types are considered priority debts, such as tax bills, student loans, and child support. Priority debts are much harder to discharge, but in many cases, the institution or individual to whom you owe money may even be willing to forgive your medical debt.

The consequences of Chapter 7 bankruptcy

Although your medical debt may be forgiven, it does not necessarily mean that you will walk away with no consequences. One of the possible outcomes is that your credit may be affected.

Chapter 7 bankruptcy is for a person who is not able to pay their debts. If you are able to declare Chapter 7 bankruptcy, there is a good chance that your medical debts will be resolved in a matter of months.

If you have medical debts and feel that Chapter 7 bankruptcy is your best solution, a knowledgeable New Jersey lawyer with expertise in debt relief may be able to help you. The lawyer will be able to guide you through the bankruptcy process and to protect your legal rights so that you can start over financially.

The effects of Chapter 7 bankruptcy

Bankruptcy can be a complex process and you may experience stress and worry. It is important to understand as much as possible about the process and to know what to expect at every stage. Although it is possible that some of your assets might be liquidated to pay creditors, your financial situation will not last forever. Your lawyer can also offer you solid guidance on how to move forward after you have gotten through the bankruptcy process so that you can begin to rebuild your credit.