Medical debt is in the top three reasons that my clients give for filing bankruptcy. Unemployment and divorce are the other two. While medical debt is generally dischargeable, before you decide to file bankruptcy, you should think about a couple of things.
First, how attached are you to the doctor whose debts you’re trying to eliminate? As you can imagine, your doctor might be a little upset that you are eliminating what you owe him through bankruptcy. It might be hard to show your face in his office again or convince him that you’ll pay him.
Second, if you expect to need more medical attention, it probably doesn’t make sense to try to file bankruptcy right away. Think about it: if you file bankruptcy and then rack up more medical bills, you’ll be in the same place you are now. You’ll have to wait another eight years before you can file Chapter 7 bankruptcy again.
Timing is just one of the factors that has to be considered when thinking about bankruptcy. File too soon, and you could lose out on taking advantage of all of the benefits bankruptcy offers. File too late, and you could have to endure more stress and legal battles from collectors and creditors that you have to.
If you think you should file bankruptcy to eliminate your medical bills, schedule a consultation with a Colorado bankruptcy attorney.