Even if you planned well, had insurance and were prepared for an emergency, the truth is that health care costs are high and may seem unpredictable. Americans spent around $3.6 trillion on medical care in 2018 alone, so it's not a surprise that so many people struggle with medical debt.
If you're struggling with medical debt, one option may be to use Chapter 13 bankruptcy to discharge what you owe. With this form of bankruptcy, you will need to make payments for between three and five years on the debts, but at the end, any remaining qualified debts may be discharged by the court.
Some studies have shown that up to 62.1% of bankruptcies do include medical debt of a significant amount. If you're thinking about bankruptcy for your debts, you're not alone.
Is there a specific form of bankruptcy for medical debt?
No, there isn't. Medical bankruptcy isn't exactly a thing, but you can ask to have your medical debts discharged through a Chapter 7 or 13 bankruptcy program.
Keep in mind that your medical debts won't be the only debts that can be discharged in bankruptcy. You'll need to let the court know about all your debts, real estate and personal property. If you have outstanding credit cards or other unsecured debts, those may also be accounted for in your bankruptcy. In the end, you could have multiple kinds of debts discharged if you stick with your bankruptcy plan.
Our website has more on bankruptcy and what you can do if you want to start the bankruptcy process.