Between the health crisis due to the coronavirus pandemic and the number of people who have lost their jobs in 2020, medical bills are likely adding to the financial difficulties that families may have already been experiencing.
Although the state of Michigan and federal agencies are assisting families who may have been impacted medically or financially by COVID-19 in numerous ways, steep medical bills may still be compounding the problem.
In light of these two factors combined, many people may be wondering if you can include medical bills when filing bankruptcy in Michigan.
Bankruptcy might be the answer to resolve both issues at the same time, so schedule a consultation with one of our bankruptcy attorneys in Brownstown Township to see if this is the route for you.
In the meantime, here are a few basic facts you may wish to know about the relationship between bankruptcy and medical bills.
Including Medical Bills When Filing Bankruptcy in Michigan
Medical bills are generally considered unsecured debt. Therefore, they can be included in a basic Chapter 7 bankruptcy, just like your credit card bills and auto loans.
If these medical bills are discharged in a Chapter 7 bankruptcy, you won’t have to pay them back. If you take the route of a Chapter 13 bankruptcy, the debts will likely be included in your 3- to 5-year repayment plan.
LEARN MORE ABOUT CHAPTER 13 BANKRUPTCY REPAYMENT PLANS
One phrase people have used is “medical bankruptcy,” but there is no such thing. You can’t file bankruptcy for only medical bills.
Bankruptcy laws aim to protect businesses as well as consumers, and for that reason the laws create some equality between businesses. In other words, it would be unfair to eliminate the debts you owe to a hospital but still make payments to your credit card company for clothing you may have purchased in the past.
Schedule a Consultation with an Attorney
In this blog, we tried to simplify the answer to the question of whether or not you can include medical bills in a bankruptcy filing in Michigan.
However, with bankruptcy law — and almost any type of legal filing for that matter — there are many “ifs, ands, or buts” that must be considered. Every situation is different, so it’s important to consult with one of our bankruptcy attorneys regarding the specifics in your case.
Call us at 734-692-9200 or send us a message online for a free consultation or additional information.