Should You File Chapter 7 or 13 Bankruptcy to Clear Medical Debt in CA?

Bankruptcy may be able to help you reduce or erase your medical debt. However, medical debts are handled differently in each type, or “chapter,” of bankruptcy in California. Therefore, it is important to understand how bankruptcy affects medical debt before you file your petition. In this article, the Roseville Chapter 7 lawyers of The Bankruptcy Group will explain some key differences between how medical debt is treated in Chapter 7, and what happens to medical debt when you file for Chapter 13. Depending on your financial resources, your long-term goals, and the amount of medical debt you’ve incurred, one chapter may be a better bankruptcy option than the other. Chapter 7 Medical Debt Relief Chapter 7, which is also called “liquidation bankruptcy,” is the most popular type of personal bankruptcy, not only in California but across the United States. According to federal bankruptcy court statistics, there were 486,347 Chapter 7 filings in 2017,…

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