Will My Doctors Still Treat Me After Filing Bankruptcy?

 Posted on October 24, 2024 in Medical Debt

Medical bankruptcy is not a specific type of bankruptcy; rather, it is an informal term used when bankruptcy discharges debt incurred from medical-related injuries and illnesses. About 56 percent of American adults have some medical debt, and almost a quarter owe more than $10,000 to doctors and hospitals. For those whose injury or illness has led to the loss of a job, the issue is even more critical.

Many people use credit cards to pay medical debt and because of the high interest rates are then unable to pay their credit cards. Some homeowners may even take out a second mortgage on their home to keep up with medical debt. Medical debt is not the same as other debt. No one chooses to be diagnosed with a serious illness or to be involved in an accident that leaves them severely injured.

Medical debt is very different from buying a $2,000 television or a new car that you are unable to pay for. The vast majority of Americans are simply not prepared for a serious illness or injury. Few have enough health insurance coverage, increasing the chances of out-of-pocket expenses. Almost 28 million adults in America are uninsured because they simply cannot afford health insurance premiums.

The prospect of filing for bankruptcy in an effort to get rid of or manage medical debt leads to another issue. What will your relationship with your healthcare provider look like once you have filed for bankruptcy? Should you find yourself in such an untenable situation, it can be beneficial to speak to a New Braunfels, TX bankruptcy attorney who can answer your questions and guide you through the process.

Can Your Doctor Refuse to Treat You Following Bankruptcy?

The short answer to this question is that the law does not prevent private medical providers – who are not covered under the anti-discrimination provisions of the U.S. Bankruptcy Code – from refusing service to patients who have filed for bankruptcy. However, there are resources and protections available, making it crucial that you fully understand your rights while exploring all your options for medical care.

Emergency care can never be refused to a patient who has filed for bankruptcy. Open, honest communication with your healthcare providers can determine the outcome of whether you will continue to receive treatment from your current providers. The type of bankruptcy you file will also have an impact.

What are the Differences Between Chapter 7 and Chapter 13 as They Apply to Medical Debt?

Medical debts are usually treated as unsecured debt during bankruptcy. This means you did not put up any collateral for the debt. Credit card debts and personal loans are unsecured debts, while your mortgage or your car loan is not. Chapter 7 bankruptcy will discharge most, if not all, of your medical debt.

This means that debt will be completely wiped out. Chapter 13 bankruptcy restructures your debt, incorporating a repayment plan that allows you to pay some, if not all, of your debts over the course of three to five years.

At least some of your medical debt will be paid under Chapter 13 bankruptcy. Medical providers could be more likely to continue treating those filing Chapter 13 bankruptcy as opposed to Chapter 7 bankruptcy, where they are likely to get none of what is owed.  

What Can You Do if You Want Your Medical Providers to Continue Treating You After Bankruptcy?

Medical ethics will generally encourage healthcare providers to treat patients regardless of the patient’s ability to pay, but this is not a legal requirement. You could try setting up a structured payment plan with each healthcare provider following your bankruptcy. You might also consider subsidized healthcare services that assist those facing financial hardship.

Contact a San Antonio, TX Bankruptcy Lawyer

Bankruptcy has many nuances that may change according to your specific circumstances. Discuss your financial situation honestly with your Kerrville, TX bankruptcy attorney to ensure your bankruptcy goals will be met. Attorney Chance McGhee is the director of the San Antonio Bankruptcy Bar Association and has extensive experience in all aspects of bankruptcy. Contact Law Offices of Chance M. McGhee at 210-342-3400 to schedule your free consultation.