Dallas Medical Debt Bankruptcy Lawyer

For some, bankruptcy is the best option for getting rid of medical debt. Because filing for bankruptcy can be a complex process, it is important for individuals to understand how each type of bankruptcy can help.

Chapter 7 Bankruptcy and Medical Bills

When you file for Chapter 7 bankruptcy, most, if not all, of your medical debt will be eliminated. If you are facing extreme medical debt, this could be the best option for you. Our attorneys can help you in this process. Visit our Chapter 7 bankruptcy page to learn more about “liquidation bankruptcy” and the means tests.

After you qualify for Chapter 7 through the means test, you will be required to list all of your medical debt and who owns that debt. In some cases, your medical bills may have been assigned to third-party administrators who will manage your accounts. Those third-party accounts are still considered nonsecured medical debt.

If you paid medical bills with credit cards, the bankruptcy court still considers that debt nonsecured and dischargeable. Although the debt is technically credit card debt, you can still eliminate it through Chapter 7. A bankruptcy attorney can assess your medical bills and other medical debt in Dallas and help you compile the necessary information for the court to discharge them so that you can move forward with life.

No. There is no limit or maximum amount of medical debt that you can discharge through bankruptcy. Many Americans have tens of thousands or even hundreds of thousands in medical bills. It can be intimidating to know that you have to repay all of that debt. However, bankruptcy can give you a clean slate on your finances. You can discharge your medical bills or repay a portion and discharge the rest. A medical debt bankruptcy attorney can evaluate your specific situation and help you understand your legal options in Dallas.

If you seek relief from medical bills through Chapter 13, there is no limit on how much medical debt you can discharge; however, you will have to repay a portion through your payment plan. The amount that you pay depends on your disposable income and the amount of debt. Many people only pay pennies on the dollar for their medical bills through a Chapter 13 payment plan.

We understand that any medical emergency can leave families struggling with debt. In fact, you are not alone; over 62% of bankruptcies in 2007 were the result of medical debt. If you are facing constant harassment from debt collectors and feel like you are losing control because of your finances, call a Dallas medical debt bankruptcy lawyer at Allmand Law Firm, PLLC. Tens of thousands of clients have already trusted us to help them climb out of debt.