Can medical bills be wiped out in bankruptcy?

 

Medical debt is becoming a nationwide problem. Almost everyone at some time or another has incurred a significant medical bill. In fact, Harvard University did a study where they concluded that over 50% of Americans who file for bankruptcy have significant medical debts. Fortunately, bankruptcy can wipe out or “discharge” all medical bills. Chapter 7 or Chapter 13 bankruptcy is a valuable tool for debtors to have their medical debts forgiven. For many of my clients, they have incurred significant medical bills even with good medical insurance. This is proof that even when you are prepared, an unexpected emergency can affect anyone.

In addition, in recent years, I have seen medical providers and collection agencies become increasingly aggressive in collecting medical debts. In South Carolina that includes the GEAR PROGRAM that allows certain medical providers to seize your South Carolina tax for unpaid medical bills. They do not even have to sue you first! The GEAR PROGRAM even allows medical providers to garnish wages in South Carolina even though there is no wage garnishment for consumer debts in our state.

If you have  medical debt and do not know where to turn for help, please feel free to call attorney Daniel Stone for a free bankruptcy consultation at either the Greenville, Columbia, Irmo or Florence offices. We offer free consultations.

- Stone Law Firm

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