Bankruptcy and Medical Debt: A Common Cause of Filing

Introduction

Even with health insurance, medical bills can pile up quickly. An unexpected surgery, emergency room visit, or ongoing treatment can lead to tens of thousands of dollars in debt. In fact, medical expenses are one of the top reasons Americans file for bankruptcy.

If you’re struggling with unpaid medical bills, bankruptcy may provide the fresh start you need.

Why Medical Debt Is So Common

• High deductibles and copays

• Surprise billing and out-of-network charges

• Loss of income during illness or recovery

• Ongoing treatments for chronic conditions Medical debt is unique because it often arises from circumstances beyond your control.

How Bankruptcy Helps with Medical Debt

Chapter 7 Bankruptcy

• Eliminates medical debt completely as it’s considered an unsecured debt.

• Provides a quick fresh start (usually within 3–4 months).

• Protects wages and property through Maryland exemptions.

Chapter 13 Bankruptcy

• Allows you to repay medical bills over 3–5 years in a structured plan.

• Creditors can’t harass you during repayment.

• Often results in paying only a fraction of the total balance.

Why Not Just Negotiate with the Hospital?

Hospitals and collection agencies may offer payment plans, but:

• Interest and fees can still grow.

• Payments may be more than you can afford.

• Collection lawsuits may still be filed. Bankruptcy provides legal protection and stops collection efforts instantly.

The Emotional Toll of Medical Debt

Beyond the financial strain, medical debt brings stress, anxiety, and fear. Many families delay care because of costs, which can worsen health outcomes. Bankruptcy can restore peace of mind and let you focus on recovery.

Key Takeaway

Bankruptcy treats medical debt like any other unsecured debt. Whether through Chapter 7’s discharge or Chapter 13’s repayment plan, you can regain control and protect your family’s financial stability.

Conclusion

Medical debt is not your fault—and you don’t have to face it alone. Bankruptcy may be the solution to eliminate crushing healthcare bills and get your life back on track.

Contact Middleton Legal today for a free consultation and take the first step toward financial and emotional relief.