A 2007 Harvard study found that nearly 70% of bankruptcy cases are Medical Bankruptcy. With today’s high deductibles, the situation hasn’t improved. Illness can mean time off of work and reduced income. Medical Bankruptcy eliminates medical debt, but only the medical bills that are owed as of the date of filing your bankruptcy petition. If you are currently running up medical bills you have a couple of bankruptcy options: You can wait until your medical problems are over and then file a Chapter 7 case. If you can’t wait that long, you can file a Chapter 13 bankruptcy case and gain protection from your creditors until you are done incurring the medical debt. At that point, you may be able to convert your case to Chapter 7 and include all of the medical debt owed at that point.
For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at BankruptcyMinn.com for a consultation.