What to Know About Bankruptcy, Medical Debt, and Disability 

 Posted on September 23, 2024 in Discharge of Debts

Medical bills are an extremely common source of debt. However, if your medical problems have left you temporarily or permanently disabled, you may have taken on other types of debt. Many people who become too sick to work or must take a lot of time off due to an injury do not have the savings needed to cover their ordinary living expenses while they are not getting paid. This might mean that you had to use a credit card to pay for food and utilities or take out a loan to pay rent. Fortunately, these debts can normally be discharged during bankruptcy. If you are considering filing for bankruptcy to help with medical debt, you should speak to a well-qualified Kerrville, TX debt relief attorney.

Are Medical Bills Discharged in Bankruptcy? 

Even if you have health insurance, medical debt can quickly become insurmountable. There is usually some aspect of your care that insurance will not cover. Perhaps you went to an in-network hospital, but one of the doctors who treated you there was out-of-network, and now you have been billed thousands for just one visit. For people dealing with a severe injury or long-term illness, these bills can add up until you reach a point where you realize you will never be able to pay it off.

Fortunately, medical bills can normally be discharged in bankruptcy. This includes co-pays, ambulance costs, inpatient treatment bills, and other outstanding balances from medical providers.

What if I Rely on Social Security Disability Now? 

You most likely qualify for Chapter 7 bankruptcy, which does not require any repayment after liquidation is complete. People who rely on disability payments and other forms of public assistance rarely have assets that are subject to liquidation, since a great deal of personal property is exempt. This means that you should not be required to use any of your limited disability income toward debt repayment.

Can I Discharge My Student Loans if I am Permanently Disabled? 

If you have become permanently disabled and were making efforts to repay your student loans before you became disabled, there is a good chance you can discharge your student loans during the bankruptcy process. While discharge of student loan debt in bankruptcy is rare, it is possible in these circumstances.

Contact a Boerne, TX Bankruptcy Lawyer 

Law Offices of Chance M. McGhee is committed to helping people who are struggling with long-term medical problems and disability find relief from debt. Experienced Kerrville, TX bankruptcy attorney Chance McGhee will do all he can to help you discharge all possible debts. Contact us at 210-342-3400 for a complimentary consultation.