Did you know that most people who file for bankruptcy in the state of Florida
do so because of medical debt? Although medical debt is a leading cause
of bankruptcy, it is not considered secured debt, which means it can be
discharged as part of a
Chapter 13 bankruptcy repayment plan. In this blog, we explain how bankruptcy can be used to
discharge your medical debt.
How Much Medical Debt Can I Discharge?
The amount of medical debt that can be discharged as part of your bankruptcy
repayment plan will depend on how much secured debt you need to repay
and how much disposable income you have. After you fulfill your payments,
unsecured debts will be fully discharged, which includes your medical debt.
Before you choose to file for Chapter 13 bankruptcy, consider the following things:
- Chapter 13 repayment plans have a strict timeline.
- The repayment period can last from three to five years, depending on the
details of your case.
- During the repayment period, all of your payments have to be made on time,
otherwise the bankruptcy will be void and your medical debt will not be
The Chapter 13 repayment plans can be difficult to follow for some people
with serious medical issues. This is usually because of new medical debt
associated with their condition that is not covered in the Chapter 13
repayment plan. If they are unable to keep up with their repayment plan,
they will lose the debt protections provided under bankruptcy.
It is important to note that if you miss payments and your debts are no
longer eligible to be discharged, you will be liable for all of your remaining debt.
St. Augustine Bankruptcy Attorneys
Are you struggling to pay off your medical debts? If so, our team of attorneys
are here to guide you through the bankruptcy process to help you discharge
your debt and get peace of mind. We can review the details of your case
and help you find a solution to your problem. We have the skills and resources
that you need to obtain a positive case result.
Call (904) 637-1839 to
schedule your free consultation with a
St. Augustine bankruptcy attorney today.