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Is There Such a Thing as a “Medical Bankruptcy”?

If you have a bunch of medical bills, they are usually about the easiest kind of debts to handle through a bankruptcy. People ask us about doing a “medical bankruptcy.” In fact, no such thing exists. Medical debts are treated like any other. But now Congress is in fact thinking about a law which would give some hefty advantages to people who have a bunch of medical bills.

The law Congress has been debating is called the Medical Bankruptcy Fairness Act. It would make filing bankruptcy easier and cheaper if you have high medical bills. Depending on which version would pass, here’s some of what it would do for you if you qualified:

  • Make it quicker for you to file any kind of bankruptcy.

  • Let you file the much simpler and cheaper Chapter 7, instead of Chapters 11 or 13, by avoiding the current income qualification for Chapter 7.

  • Let you keep much more of your home equity, up to $250,000 (way more than the current amount in Oregon), no matter which one of the Chapters you file.

  • Even if you don’t have any medical debts, it would allow you to pay some of your attorney fees AFTER your case was filed, so you don’t have to pay all those fees before we can file your case.

If you have a bunch of medical debts, or any other kind, call us today for a free consultation. We will sit down with you in a relaxed meeting and talk over your situation. No obligation, no pressure. Together we will help you decide whether a bankruptcy is really best for you. And if so, which kind.

Plus, we’re keeping a close eye on this “medical bankruptcy” legislation. It’s our job to be at the cutting edge of the law. This law may or may not change anything for you, but we want to bring to you every possible advantage if you end up filing a bankruptcy.

Portland Bankruptcy Law Group has the experience and knowledge to handle your case. Our bankruptcy lawyers are extremely familiar with and are well versed in all aspects of bankruptcy law. Contact us today!