Question Detail: I was in a car accident last year, and because I don’t have insurance, I owe thousands in medical bills. Can I file for bankruptcy to eliminate these bills? These bills are crushing me and I’ll never be able to pay them off!
Answer: Bankruptcy eliminates medical bills, just like it eliminates credit card debt, personal loans, payday loans, bank loans, unsecured lines of credit, signature loans, charge cards, mortgage deficiencies, repossession debt, healthcare-related debt, and other legal liabilities. People with crushing medical debt often hang-on for years before they seek out a bankruptcy attorney. They have drained their retirement account, borrowed from friends and family, taken out loans against their house, worked endless hours at three jobs, and tried to work-out payment arrangements with their creditors. Their efforts are valiant, but sometimes to no avail. Debtors often feel a greater sense of obligation to pay the doctors and other medical providers that helped them in time of need. That is admirable, but keep this in mind: if you’re having problems with medical bills, your doctor and hospital have already turned you over to collections or probably sold your debt, and your doctor has likely already been paid. It’s the collection agencies and law firms who are calling you all hours of the day and night, not your doctor’s office. Bankruptcy is merely a tool to stop the creditor pressure and give you some financial relief. If you feel so obligated, you can pay back your doctor (and other creditors) on your own terms after the bankruptcy is done. Don’t try this alone, get help from an experienced bankruptcy attorney. You don’t want to unwittingly re-obligate yourself. Have a question about bankruptcy in Utah? Craig Swapp & Associates would be happy to answer it. Please submit your question online and we’ll respond as soon as possible.