Bankruptcy for Medical Debt: Facts You Should Know

Medical emergencies are unpredictable. You never know what is waiting for you tomorrow. It is possible that you have enough savings for your future, but if any medical emergency takes place, your savings could be at stake. You can’t skip treatment, no matter how costly it is. In many cases, people either have failed to pay the medical bills, or they are buried under debt.

Filing for bankruptcy is a great escape from that. If you are confused about the benefits of filing for bankruptcy for medical bills and how to file bankruptcy in Oklahoma, here is some important information to clear the air.

How Does It Work?

Once you file for bankruptcy, it separates your debt into two categories. There are some debts which are tagged as special priority treatment and through bankruptcy, it can’t be removed. But the exception is medical bills. Medical bills are considered general debt, like credit cards and others, it can be removed easily by filing for bankruptcy. To file bankruptcy in Oklahoma, you can contact a bankruptcy lawyer.

What Ways Are There to Eliminate Medical Bills with Bankruptcy?


There are two ways on which you can file for bankruptcy; Chapter 7 and Chapter 13. Chapter 7 is the most common one to eliminate debt, whereas Chapter 13 is more complicated.

Qualifying for Chapter 7 bankruptcy, you will be able to remove all medical bills along with most other debt. The amount of medical debt is not restricted. It will also discharge debt from credit cards for the payment of medical bills. You can connect with a lawyer for the rules, regulations and eligibility criteria for a bankruptcy means test.


In a Chapter 13 bankruptcy, medical bills are chunked in with the other debts you have. All of it goes together under a repayment plan. The payable amount will be decided based on income, non-exempt assets and normal expenses. Each of the creditors receive a prorated portion from the payments made through the plan. But there is one constraint. The medical bills cannot exceed the provided limit of bankruptcy Chapter 13.

If you are on the verge of filing bankruptcy for unpaid medical bills or similar debts, you should consult an attorney firm such as Chris Mudd & Associates for the help.

** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.