Bankruptcy and Medical Debt

People in trouble with debt arrive at that point by many different paths. Some overuse credit cards. Some have lost a wage earning spouse through death or divorce. Some have experienced losses in natural disasters or accidents, such as fires, floods or hurricanes. All of these are very common — though painful — reasons for considering bankruptcy as a form of debt relief.

For some people, the path to debt crisis is literally painful, coming as a result of a medical crisis. An injury, a bout with cancer, or development of a chronic illness or condition can stress budgets to the breaking point, even when health insurance is in place. Co-pays, emergency room bills and costly medications add up quickly.

The good news about bankruptcy and medical debt is that bankruptcy will take care of the unpaid bills. Whether you file Chapter 7 or Chapter 13 bankruptcy, this form of debt relief can totally or partially eliminate medical debt that you cannot repay.

"What about medical treatments that I am receiving and still need? Will filing bankruptcy make it difficult or impossible for me to continue to get the therapy or medications that I vitally need?" We often hear these questions in our bankruptcy law offices in East Orange, Paterson, Jersey City and Newark, New Jersey. The answers to your questions about bankruptcy, medical debt and ongoing medical treatments should come from a lawyer who knows the details of your situation.


  • For a health care provider to cease needed treatments because you cannot keep up with the bills may amount to malpractice or unethical practices. Talk to an attorney to discuss your challenges involving medical debts and medical problems.
  • A skilled bankruptcy lawyer may be able to craft a workable solution in a number of ways, depending on the details of your situation. For example, you may be able to put past unpaid bills into a Chapter 13 bankruptcy, repaying what you can over three to five years with little to no interest. In the meantime, you can continue to receive treatments with renewed hope of staying current on new bills, now that your debt load is much more manageable.
  • Some debtors in these circumstances are able to switch their Chapter 13 bankruptcy cases to Chapter 7 bankruptcy cases later on, eliminating the remainder of unpaid medical bills.

There is very likely a light at the end of the tunnel you have been going through after becoming ill or injured. The financial nightmare can be brought under control and you can concentrate on getting well.

Contact Our Northern And Central New Jersey Chapter 7 and 13 Bankruptcy Attorneys

Remember that a Chapter 7 bankruptcy will wipe out consumer debts — including medical debts. A Chapter 13 bankruptcy will reorganize debts, and most likely reduce them substantially — including hospital and doctor bills. Call our experienced Essex County, New Jersey, bankruptcy lawyers today for a free one-half hour consultation at 973-414-8069 or 888-827-5493. Our lawyers serve Essex, Union, Hudson, Passaic, Bergen, Morris, Middlesex, Sussex and other New Jersey counties.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.