Chapter 7 Bankruptcy & Medical Bills

TL;DR

Learn about how Chapter 7 bankruptcy can eliminate medical bills, but it's important to consider timing and future expenses. Debt settlement is also a viable option, as medical providers often settle for less and medical debt can be deleted from your credit report.

Transcript

• Hey, everybody, John Skiba here, and in this video, I'm going to share with you some tips and strategies on how to deal with medical bills through Chapter 7 bankruptcy and through debt settlement. But, if this is your first time here to my YouTube channel, go ahead and click subscribe. That way you get notified each and every week when I put out ... Read More

Key Insights

• 😷 Chapter 7 bankruptcy can eliminate medical bills, but timing is crucial, as future medical expenses may not be included in the discharge.
• 👨‍⚕️ Filing bankruptcy on a specific doctor's debt may strain the patient-doctor relationship, so communication is important to explore alternatives.
• 🏥 Hospitals cannot refuse treatment even if you have filed bankruptcy on their debts.
• 😷 Debt settlement is a viable option for medical bills, as medical providers often settle for less and medical debt can be deleted from credit reports.
• 😷 Medical providers usually don't report debts to credit agencies directly, but collection agencies they work with may report medical collections after 180 days.
• 😷 Debt settlement offers individuals a chance to negotiate and potentially reduce the amount owed for medical bills.
• 💳 Settling medical debt can have a positive impact on credit scores once it is paid and completely deleted from credit reports.

Questions & Answers

Q: What is the difference between Chapter 7 bankruptcy and debt settlement when it comes to medical bills?

Chapter 7 bankruptcy discharges medical bills completely, while debt settlement allows for negotiation and a potential reduction in the amount owed. Debt settlement can have a positive impact on your credit score once the debt is settled and paid.

Q: Are all medical bills discharged in Chapter 7 bankruptcy?

Only medical bills incurred prior to filing for bankruptcy are included and discharged. Any medical treatments or bills incurred after the filing date remain your responsibility.

Q: Can I maintain a relationship with my doctor if I file bankruptcy on their debts?

Filing bankruptcy on a specific doctor's debt may lead to them terminating your patient relationship. It's important to communicate with your medical provider and discuss the situation to explore alternative arrangements or payment options.

Q: How does debt settlement impact credit reporting for medical bills?

Medical providers typically don't report to credit agencies directly, but collection agencies they may utilize often do. However, the major credit reporting agencies don't report medical collections until 180 days past the due date. Settling medical debt can result in its complete deletion from your credit report, improving your credit score.

Summary & Key Takeaways

• Chapter 7 bankruptcy discharges medical bills as unsecured general nonpriority debt, just like credit cards, without any need for payment or collateral.

• Medical bills incurred prior to filing for Chapter 7 bankruptcy are included and discharged, but future medical bills will still be your responsibility.

• Filing bankruptcy on a specific doctor's debt wipes out the dues, but the doctor may decide to terminate the patient relationship.

• Hospitals cannot deny you entrance or treatment even if you have filed bankruptcy on their debts.