The emotional toll of losing a loved one can be overwhelming. On top of that, you may receive bills for their unpaid medical care.
It’s essential to understand when you may be responsible for this debt and when you are not. Below are some important points to consider.
Who is responsible for the debt?
In most cases, medical debt is paid from the deceased person’s estate. If the estate has enough assets, those funds will go to creditors before anything is distributed to heirs and other beneficiaries.
Family members are not automatically responsible for this type of debt. In New Jersey, a spouse is not liable unless they signed or co-signed an agreement to pay for the care. Adult children are also not responsible unless they agreed to take on the debt in writing.
What if the estate has no money?
If the estate cannot cover the debt, the creditor may not get paid. Medical providers may send collection letters, but they cannot force payment from someone who is not legally responsible.
Shared accounts or jointly owned property can create confusion. If you had joint financial ties with the person who passed away, you should look more closely at what debts you may be responsible for paying.
How bankruptcy might help
If you did take on responsibility for the debt and cannot afford it, bankruptcy may be an option. In New Jersey, medical bills are considered unsecured debt. This means they can be discharged through Chapter 7 or Chapter 13 bankruptcy.
Bankruptcy is not always the right choice, but it can help relieve serious financial pressure when medical debt becomes overwhelming. Before making any decisions, you should consider seeking legal guidance.
