Medical debt is a growing concern for many Americans, and it can be overwhelming to manage. Chapter 7 bankruptcy offers a potential solution for individuals burdened by medical bills, allowing them to wipe away a significant portion of their debt.
However, understanding the intricacies of this legal process is crucial before taking such a step. This guide will provide a comprehensive overview of Chapter 7 bankruptcy, exploring its benefits, drawbacks, eligibility requirements, and the steps involved in filing.
We’ll delve into the specific requirements for medical debt discharge in Chapter 7, comparing it to other debt relief options and outlining the potential impact on your credit score and future borrowing. This guide will also equip you with the knowledge to make informed decisions about your financial future.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a legal process where a debtor’s assets are sold to pay off creditors. It is a powerful tool for individuals and families struggling with overwhelming debt, including medical debt. While Chapter 7 bankruptcy can provide a fresh financial start, it’s important to understand the process and eligibility requirements before considering it.
Eligibility Criteria for Chapter 7 Bankruptcy
To qualify for Chapter 7 bankruptcy, individuals must meet specific financial criteria. The most common eligibility requirements include:
- Passing the “means test”: This test determines whether an individual’s income is below a certain threshold, making them eligible for Chapter 7. The threshold is based on the state’s median income and the number of dependents in the household.
If the individual’s income is above the threshold, they may be required to file for Chapter 13 bankruptcy instead.
- Passing the “asset test”: This test determines whether an individual’s assets exceed a certain threshold. If the assets exceed the threshold, the individual may be required to file for Chapter 13 bankruptcy instead.
- Having unsecured debts: This includes debts like credit card bills, medical bills, and personal loans. Chapter 7 bankruptcy can discharge these debts, allowing the individual to start over financially.
- Not having filed for bankruptcy within the past 8 years: Individuals who have filed for bankruptcy within the past 8 years may not be eligible for Chapter 7.
Specific Requirements for Medical Debt Discharge
Medical debt can be discharged in Chapter 7 bankruptcy. However, there are some specific requirements:
- The debt must be unsecured: Medical bills that are not secured by an asset, such as a mortgage or car loan, are considered unsecured debts and can be discharged in Chapter 7. However, debts secured by an asset, such as a medical lien on a house, cannot be discharged.
- The debt must be incurred before filing for bankruptcy: Medical bills incurred after filing for bankruptcy cannot be discharged.
- The debt must be owed to a medical provider: Medical debt owed to a medical provider, such as a hospital or doctor’s office, can be discharged. However, debts owed to other entities, such as insurance companies or debt collectors, may not be discharged.
Legal Process of Filing for Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy involves a specific legal process that includes the following steps:
- Consultation with a bankruptcy attorney: It’s crucial to consult with a qualified bankruptcy attorney to understand the process and ensure you meet the eligibility requirements.
- Filing the bankruptcy petition: The attorney will prepare and file the bankruptcy petition with the bankruptcy court. The petition includes detailed information about the debtor’s income, expenses, assets, and liabilities.
- Credit counseling: The debtor must complete credit counseling with an approved agency before filing for bankruptcy. This counseling helps the debtor understand their financial situation and explore alternatives to bankruptcy.
- Automatic stay: Once the bankruptcy petition is filed, an automatic stay goes into effect, which prevents creditors from taking any collection actions against the debtor, including lawsuits, wage garnishments, and repossessions.
- Meeting of creditors: The debtor must attend a meeting with creditors, where they will be questioned about their financial situation. This meeting is an opportunity for creditors to ask questions and object to the discharge of certain debts.
- Discharge of debts: After the meeting of creditors, the bankruptcy court will review the case and issue a discharge order. This order releases the debtor from most of their debts, including medical debt. However, some debts, such as student loans and certain taxes, may not be discharged.
Benefits and Drawbacks of Chapter 7 for Medical Debt
Chapter 7 bankruptcy can be a powerful tool for eliminating medical debt, offering a fresh start for individuals struggling to manage overwhelming medical bills. While it can provide significant relief, it’s crucial to understand both the potential benefits and drawbacks before making a decision.
Benefits of Chapter 7 Bankruptcy for Medical Debt
Chapter 7 bankruptcy offers several potential benefits for individuals burdened by medical debt.
- Complete Debt Discharge:Chapter 7 bankruptcy allows for the discharge of most unsecured debts, including medical bills, credit card debt, and personal loans. This can provide a significant financial relief and allow individuals to start rebuilding their credit.
- Protection from Creditors:Once a Chapter 7 bankruptcy is filed, creditors are legally prohibited from contacting you or taking any collection actions. This can provide much-needed peace of mind and prevent further financial stress.
- Potential for a Faster Discharge:Chapter 7 bankruptcy typically has a shorter timeframe than other bankruptcy options, such as Chapter 13. This can be beneficial for individuals who need immediate relief from their debts.
Drawbacks of Chapter 7 Bankruptcy for Medical Debt
While Chapter 7 bankruptcy offers significant benefits, it also comes with potential drawbacks that individuals should carefully consider.
- Impact on Credit Score:Chapter 7 bankruptcy will significantly impact your credit score, making it more difficult to obtain loans or credit cards in the future. It will remain on your credit report for 10 years, impacting your financial options.
- Potential Asset Liquidation:While Chapter 7 bankruptcy allows for the discharge of most unsecured debts, it may require the liquidation of certain assets to pay off secured debts. This could involve selling a home, car, or other valuable possessions.
- Potential Negative Impact on Future Employment:Some employers may be hesitant to hire individuals with a bankruptcy on their record. This can be a concern for individuals seeking new employment opportunities.
Comparison of Chapter 7 Bankruptcy with Other Debt Relief Options
Chapter 7 bankruptcy is not the only debt relief option available. Individuals should compare its advantages and disadvantages with other options, such as debt consolidation, debt management plans, and Chapter 13 bankruptcy.
- Debt Consolidation:This involves combining multiple debts into a single loan with a lower interest rate. While it can simplify payments, it may not address the root cause of the debt and may not be suitable for individuals with high debt-to-income ratios.
- Debt Management Plans:These plans involve working with a credit counseling agency to negotiate lower interest rates and monthly payments with creditors. This option may not be suitable for individuals with large debts or who are unable to make consistent payments.
- Chapter 13 Bankruptcy:This option allows individuals to reorganize their debts and create a repayment plan over a period of three to five years. While it can preserve assets and prevent foreclosure, it requires consistent payments and may not be suitable for individuals who are unable to make regular payments.
Determining Eligibility for Chapter 7 Bankruptcy
Not everyone qualifies for Chapter 7 bankruptcy. There are specific income and asset limitations that must be met to be eligible. Additionally, medical debt must meet certain criteria to be discharged.
Income and Asset Limitations
To be eligible for Chapter 7 bankruptcy, you must meet certain income and asset limitations. This means your income must be below a certain threshold, and your assets must not exceed a certain value. The specific limits are determined by the U.S.
Department of Justice and vary based on your state and household size.
For example, in 2023, the median income limit for a household of four in the state of California is $87,675. This means that a household with four members earning more than $87,675 annually would likely not qualify for Chapter 7 bankruptcy.
The asset limits are also important. If you have assets that exceed the allowed limits, you may be required to sell them to pay off your debts.
For example, you may need to sell a second home or a valuable collection of artwork to pay off your debts.
Medical Debt Discharge
To determine if your medical debt qualifies for discharge under Chapter 7, you need to understand the following:
Secured vs. Unsecured Debt
Secured debt is backed by collateral, such as a mortgage or car loan. Unsecured debt is not backed by collateral, such as credit card debt or medical bills. Generally, unsecured debt is easier to discharge in bankruptcy.
Exemptions
Some debts are exempt from discharge, such as student loans and certain taxes.
Good Faith
You must have acted in good faith in accumulating your debt. This means you must have not intentionally incurred debt to file for bankruptcy.
Role of a Bankruptcy Attorney
A bankruptcy attorney plays a crucial role in assessing your eligibility for Chapter 7 bankruptcy. They can:
Analyze your financial situation
They will review your income, assets, and debts to determine if you meet the eligibility requirements.
Identify potential exemptions
They can help you identify debts that may be exempt from discharge.
Prepare and file your bankruptcy petition
They will prepare all the necessary documents and file them with the court.
Represent you in court
They will represent you in court during the bankruptcy process.By consulting with a bankruptcy attorney, you can increase your chances of successfully filing for Chapter 7 bankruptcy and getting your medical debt discharged.
Steps Involved in Filing Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy is a significant legal process that requires careful planning and execution. Understanding the steps involved will help you navigate the process effectively and increase your chances of a successful outcome.
Gathering Necessary Documents
Before you can file for Chapter 7 bankruptcy, you’ll need to gather a variety of documents that provide a comprehensive picture of your financial situation. These documents are essential for accurately completing the bankruptcy petition and supporting schedules.
- Proof of Income:This includes pay stubs, tax returns, and any other documentation that demonstrates your income for the past six months.
- List of Debts:Create a detailed list of all your debts, including the amount owed, the creditor’s name, and the account number. This list should include medical debt, credit card debt, student loans, mortgages, and any other outstanding obligations.
- List of Assets:Prepare a list of all your assets, including their estimated value. This includes your home, car, bank accounts, investments, and any other property you own.
- Monthly Expenses:Document your monthly expenses, including rent or mortgage payments, utilities, groceries, transportation, and other recurring costs.
Submitting a Bankruptcy Petition
Once you have gathered all the necessary documents, you can begin the process of submitting your Chapter 7 bankruptcy petition. This petition is a formal legal document that Artikels your financial situation and requests the court to discharge your debts.
- Consult with a Bankruptcy Attorney:It’s crucial to consult with an experienced bankruptcy attorney who can guide you through the process and ensure your petition is filed correctly. They can also help you determine if Chapter 7 is the right option for your circumstances.
- Prepare the Petition:Your attorney will assist you in preparing the bankruptcy petition, which includes details about your income, debts, assets, and expenses.
- File the Petition:The petition is filed with the bankruptcy court in the district where you reside. This initiates the Chapter 7 bankruptcy process.
Attending Court Hearings
After filing your petition, you will likely be required to attend a few court hearings. These hearings are designed to ensure that your case meets the requirements for Chapter 7 bankruptcy and to allow creditors to ask questions.
- 341 Meeting of Creditors:This is a mandatory meeting where you will appear before a bankruptcy trustee and your creditors. You will be asked questions about your financial situation, debts, and assets. This meeting is an opportunity for creditors to ask questions and for you to provide any additional information.
- Discharge Hearing:If your case is approved, you will attend a discharge hearing where the judge will formally grant you a discharge of your eligible debts. This means you are no longer legally obligated to repay those debts.
Timeline for Chapter 7 Bankruptcy
The Chapter 7 bankruptcy process typically takes several months to complete. The exact timeline can vary depending on the complexity of your case and the court’s workload.
- Initial Filing:The process begins with filing your bankruptcy petition, which usually takes a few weeks to complete.
- 341 Meeting:This meeting typically occurs within 30 to 45 days after filing your petition.
- Discharge:If your case is approved, you can expect to receive your discharge order within 60 to 90 days after the 341 meeting.
Considerations After Filing Chapter 7 Bankruptcy
While Chapter 7 bankruptcy can offer a fresh start by eliminating medical debt, it’s essential to understand the long-term consequences and how to navigate the path forward. Filing for Chapter 7 bankruptcy has a significant impact on your credit score and future borrowing ability.
It also comes with specific obligations and responsibilities that you must fulfill. This section will explore the key considerations you should be aware of after filing for Chapter 7 bankruptcy.
Impact on Credit Scores and Future Borrowing
Chapter 7 bankruptcy significantly affects your credit score, often leading to a substantial drop. This impact can last for several years and make it challenging to obtain loans or credit cards with favorable terms.
- Credit Score Reduction:A Chapter 7 bankruptcy remains on your credit report for 10 years. During this period, your credit score will be negatively impacted, making it harder to secure loans, mortgages, or credit cards.
- Higher Interest Rates:Even after the bankruptcy is discharged, lenders may still view you as a higher risk, leading to higher interest rates on loans and credit cards.
- Limited Credit Access:Some lenders may be reluctant to extend credit to individuals with a recent bankruptcy filing. This could limit your access to essential financial products like mortgages or car loans.
Consequences of Failing to Comply with Bankruptcy Court Orders
Failing to comply with court orders can have serious consequences, including:
- Contempt of Court:You could be held in contempt of court, which can result in fines or even imprisonment.
- Dismissal of Bankruptcy:The bankruptcy court may dismiss your case, leaving you responsible for the debts you sought to discharge.
- Damage to Future Credit:Non-compliance can further damage your credit score and make it more difficult to rebuild your credit in the future.
Rebuilding Credit After Chapter 7 Bankruptcy
Rebuilding your credit after Chapter 7 bankruptcy requires patience and a strategic approach.
- Secure a Secured Credit Card:Secured credit cards require a security deposit, which reduces the lender’s risk. They can help you establish a positive credit history after bankruptcy.
- Become an Authorized User:Ask a trusted friend or family member with good credit to add you as an authorized user on their credit card. This can help improve your credit score.
- Pay Bills on Time:Make all your payments on time, including rent, utilities, and other bills. This demonstrates responsible financial behavior to lenders.
- Monitor Your Credit Report:Regularly review your credit report for errors and ensure all information is accurate. You can obtain a free credit report from each of the three major credit bureaus annually.
Alternative Debt Relief Options for Medical Debt
While Chapter 7 bankruptcy can provide a fresh start by eliminating medical debt, it’s not the only option available. Other debt relief methods can help manage medical debt without resorting to bankruptcy. This section explores alternative options and compares their pros and cons, allowing you to make an informed decision.
Comparing Chapter 7 Bankruptcy to Other Debt Relief Options
Chapter 7 bankruptcy offers a comprehensive solution for eliminating debt, including medical debt. However, it involves a legal process and has consequences, such as a negative impact on your credit score. Alternative debt relief options may be more suitable for some individuals, offering flexibility and less drastic measures.
Debt Consolidation
Debt consolidation combines multiple debts into a single loan with potentially lower interest rates. This can streamline payments and potentially save money on interest.
Pros
- Lower monthly payments
- Simplified debt management
- Potentially lower interest rates
Cons
- May not be available for all individuals
- May extend the repayment period
- Potential for higher total interest paid over the life of the loan
Medical Debt Settlement
Medical debt settlement involves negotiating with creditors to reduce the amount owed. This option can significantly lower the total debt, but it may impact your credit score.
Pros
- Can significantly reduce medical debt
- May be more affordable than other options
- Can help avoid bankruptcy
Cons
- May negatively impact your credit score
- Negotiations can be complex and time-consuming
- Not all creditors are willing to settle
Resources for Finding Credit Counseling Services and Debt Management Programs
Credit counseling agencies and debt management programs can provide valuable guidance and support in managing debt. These resources can offer personalized advice, develop a debt management plan, and negotiate with creditors on your behalf.
- National Foundation for Credit Counseling (NFCC):[https://www.nfcc.org/](https://www.nfcc.org/) The NFCC is a non-profit organization that provides free and confidential credit counseling services. They offer a directory of certified credit counselors across the country.
- Consumer Credit Counseling Service (CCCS):[https://www.cccs.org/](https://www.cccs.org/) CCCS is a non-profit organization that offers credit counseling, debt management, and financial education services. They have a network of certified counselors across the United States.
- The United States Department of Justice:[https://www.justice.gov/crt/consumer-protection](https://www.justice.gov/crt/consumer-protection) The Department of Justice’s Consumer Protection Branch provides information and resources on consumer rights and debt management.
- The Federal Trade Commission (FTC):[https://www.ftc.gov/](https://www.ftc.gov/) The FTC provides information and resources on debt collection practices, consumer rights, and debt relief scams.
Financial Planning After Bankruptcy
A fresh start through Chapter 7 bankruptcy is a significant step, but it’s not the finish line. To truly rebuild your financial well-being, you must create a post-bankruptcy financial plan and stick to it. This plan will help you avoid repeating past mistakes and establish a stable financial future.
Creating a Post-Bankruptcy Budget
After bankruptcy, it’s crucial to create a detailed budget that Artikels your income and expenses. This will help you track your spending and ensure you’re living within your means. A budget can be a powerful tool for managing your finances and staying on track.
- Track Your Income:List all sources of income, including salary, wages, benefits, and any other regular income streams.
- Categorize Your Expenses:Break down your expenses into categories such as housing, food, transportation, utilities, healthcare, and entertainment.
- Identify Areas for Savings:Look for areas where you can cut back on spending, such as reducing dining out, entertainment, or subscriptions.
- Set Financial Goals:Determine short-term and long-term financial goals, such as building an emergency fund, paying down debt, or saving for retirement.
Managing Finances After Bankruptcy
Following a bankruptcy, you need to adopt new financial habits to prevent future debt accumulation. These strategies can help you stay on track and avoid repeating past mistakes.
- Avoid Credit:It’s essential to resist the temptation to use credit cards or take out loans. Focus on using cash or debit cards for all purchases to avoid accruing new debt.
- Build an Emergency Fund:Aim to save at least three to six months’ worth of living expenses in an emergency fund. This will help you handle unexpected situations without resorting to debt.
- Negotiate with Creditors:If you have existing debt, negotiate with creditors to reduce payments or interest rates. Be prepared to explain your financial situation and demonstrate your commitment to repayment.
- Consider Debt Consolidation:If you have multiple debts, consider debt consolidation to simplify your payments and potentially lower your interest rates.
Accessing Financial Resources
There are resources available to help you rebuild your finances after bankruptcy. These programs can provide guidance, support, and education.
- Credit Counseling Agencies:Credit counseling agencies offer free or low-cost services, including budget counseling, debt management plans, and financial education.
- Financial Literacy Programs:Many organizations offer financial literacy programs that teach budgeting, saving, and other essential financial skills.
- Community Resources:Local community centers, libraries, and government agencies often provide financial assistance and support services.
Resources for Legal and Financial Assistance
Navigating the complex world of bankruptcy can feel overwhelming, but you don’t have to go through it alone. Numerous resources are available to guide you through the process and provide support along the way. It’s crucial to seek professional assistance from qualified individuals who can provide accurate information and guidance.
This section will explore resources available for legal and financial assistance, including reputable bankruptcy attorneys, credit counseling agencies, government programs, and organizations offering free or low-cost legal aid and financial counseling.
Reputable Bankruptcy Attorneys
Finding a qualified bankruptcy attorney is essential for a successful Chapter 7 filing. Here’s a list of reputable resources to help you locate experienced professionals:
- National Association of Consumer Bankruptcy Attorneys (NACBA):This organization represents consumer bankruptcy attorneys nationwide. You can search for attorneys in your area on their website, which includes information about their qualifications and experience.
- American Bankruptcy Institute (ABI):The ABI is a professional organization for bankruptcy professionals, including attorneys. Their website provides a directory of members, allowing you to search for attorneys specializing in consumer bankruptcy.
- Local Bar Associations:Most local bar associations maintain directories of attorneys practicing in their area. You can search for bankruptcy attorneys specializing in consumer cases through these directories.
Credit Counseling Agencies
Credit counseling agencies offer valuable assistance in managing debt and exploring options for debt relief, including bankruptcy. These agencies can provide education, budgeting advice, and support in navigating the process. Here are some reputable organizations:
- National Foundation for Credit Counseling (NFCC):The NFCC is a non-profit organization that provides credit counseling services and financial education resources. You can find a certified NFCC counselor in your area through their website.
- Consumer Credit Counseling Service (CCCS):The CCCS is a non-profit organization that offers a range of credit counseling services, including debt management plans and bankruptcy counseling. They have a network of counselors across the country.
- United States Department of Justice (DOJ):The DOJ provides information and resources for consumers facing financial difficulties, including links to credit counseling agencies and other helpful resources.
Government Programs and Resources
The government offers various programs and resources to assist individuals facing financial hardship. Here are some key options:
- Legal Aid Organizations:Legal aid organizations provide free or low-cost legal assistance to individuals who cannot afford legal representation. Many organizations specialize in bankruptcy cases and can offer valuable guidance.
- United States Courts:The federal court system provides information and resources related to bankruptcy, including forms and instructions for filing Chapter 7. You can find information about local bankruptcy courts on the website of the United States Courts.
- United States Trustee Program:The U.S. Trustee Program oversees bankruptcy cases and provides information and resources for debtors and creditors. You can access their website for helpful information and guidance.
Organizations Offering Free or Low-Cost Legal Aid and Financial Counseling
Several organizations offer free or low-cost legal aid and financial counseling services to individuals in need. These organizations can provide valuable support and guidance throughout the bankruptcy process. Here are some reputable options:
- Legal Services Corporation (LSC):The LSC is a non-profit organization that funds legal aid organizations across the country. Their website provides a directory of legal aid organizations that offer free or low-cost legal assistance, including bankruptcy representation.
- National Legal Aid & Referral Service (NLARS):The NLARS is a non-profit organization that provides referrals to legal aid organizations and other resources for low-income individuals. You can search for legal aid providers in your area through their website.
- National Consumer Law Center (NCLC):The NCLC is a non-profit organization that advocates for consumer rights and provides resources and legal assistance to individuals facing financial difficulties. They offer a variety of publications and resources related to bankruptcy.
Related Terms and Concepts
Understanding the terminology associated with bankruptcy and related financial concepts can be helpful in navigating the process. Here’s a breakdown of key terms that might come up as you explore your options:
Finance
Finance refers to the management of money and other assets. It encompasses various aspects, including:
- Personal Finance:Managing your own money, including budgeting, saving, investing, and debt management.
- Corporate Finance:Financial decisions and activities within a company, such as raising capital, managing investments, and paying dividends.
- Public Finance:The financial management of governments, including taxation, spending, and debt management.
Auto Loans
Auto loans are a type of loan specifically designed for purchasing vehicles. They typically have a fixed interest rate and a set repayment term.
Bankruptcy Lawyers
Bankruptcy lawyers are legal professionals specializing in bankruptcy law. They can guide individuals and businesses through the bankruptcy process, helping them file the necessary paperwork, understand their rights, and negotiate with creditors.
Bankruptcy Medical
Bankruptcy medical refers to the discharge of medical debt through bankruptcy. This means that medical bills that are included in a Chapter 7 bankruptcy filing can be legally erased.
Bankruptcy Personal
Bankruptcy personal, also known as Chapter 7 bankruptcy, is a type of bankruptcy that allows individuals to eliminate most of their debts, including credit card debt, medical bills, and personal loans.
Bankruptcy Tips Advice
Bankruptcy tips advice refers to information and guidance provided to individuals considering filing for bankruptcy. This advice often covers topics such as eligibility requirements, the bankruptcy process, and potential consequences.
Credit Counseling
Credit counseling involves working with a professional to improve your financial situation. Credit counselors can help you develop a budget, manage debt, and improve your credit score.
Credit Tips
Credit tips are practical suggestions and strategies for managing your credit effectively. These tips can cover areas like building credit, avoiding debt, and using credit responsibly.
Currency Trading
Currency trading involves buying and selling different currencies to profit from fluctuations in their exchange rates. It is a complex and potentially risky investment strategy.
Debt Consolidation
Debt consolidation involves combining multiple debts into a single loan with a lower interest rate. This can make it easier to manage your payments and potentially save money on interest.
Debt Management
Debt management refers to the process of effectively managing your debts, including strategies for reducing debt, budgeting, and negotiating with creditors.
Debt Relief
Debt relief refers to any method or program designed to help individuals reduce or eliminate their debt. This can include options like debt consolidation, bankruptcy, or debt settlement.
Estate Plan Trusts
Estate plan trusts are legal entities that hold assets for the benefit of beneficiaries. They can be used to distribute assets, minimize taxes, and protect assets from creditors.
Home Equity Loans
Home equity loans are loans that use the equity in your home as collateral. They can be used for various purposes, such as home improvements, debt consolidation, or medical expenses.
Ultimate Conclusion
Navigating the complexities of Chapter 7 bankruptcy can be daunting, but it’s important to remember that you’re not alone. Seeking guidance from a qualified bankruptcy attorney is crucial to ensure you understand the process and make informed decisions. While bankruptcy can provide a fresh start, it’s essential to consider its long-term implications and develop a sound financial plan for the future.
By taking proactive steps to manage your finances and avoid future debt accumulation, you can pave the way for a more stable and secure financial future.
Common Queries
Can I file for Chapter 7 bankruptcy if I have a high income?
Chapter 7 bankruptcy has income limitations. You must meet specific income requirements to qualify. A bankruptcy attorney can assess your eligibility based on your income and assets.
Will I lose all of my assets if I file for Chapter 7 bankruptcy?
Chapter 7 allows you to keep certain assets, including a primary residence, vehicle, and personal property, up to specific limits. A bankruptcy attorney can advise you on which assets are protected.
What happens to my medical bills after I file for Chapter 7 bankruptcy?
Once your Chapter 7 bankruptcy is discharged, your medical debt is legally erased. However, you may still receive collection notices. You should consult with a bankruptcy attorney to address these notices.
How long does it take to complete the Chapter 7 bankruptcy process?
The typical Chapter 7 bankruptcy process takes around 4-6 months. However, it can vary depending on the complexity of your case and the court’s workload.
