{"id":286964,"date":"2021-01-12T07:47:08","date_gmt":"2021-01-12T12:47:08","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/can-you-clear-medical-debt-in-bankruptcy.html"},"modified":"2026-07-10T00:20:00","modified_gmt":"2026-07-10T05:20:00","slug":"can-you-clear-medical-debt-in-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/can-you-clear-medical-debt-in-bankruptcy.html","title":{"rendered":"Can You Clear Medical Debt in Bankruptcy?"},"content":{"rendered":"\n
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Can You Clear Medical Debt in Bankruptcy?<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Yes. Clearing medical debt in bankruptcy is a way to eliminate unsecured healthcare liabilities. You can do this one of two ways: by filing for Chapter 7 liquidation or Chapter 13 reorganization. A Chapter 7 discharge erases these bills completely without repayment if you qualify via a means test. Alternatively, Chapter 13 restructures your debt into a multi-year repayment plan, halting collection actions and providing essential financial relief.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

According to statistics cited by the American Journal of Medicine, medical bills<\/span> are the primary reason U.S. citizens declare bankruptcy each year. The high cost<\/span> of healthcare<\/span> expenses<\/span> and the amount of out-of-pocket<\/span> costs<\/span> mean that chronic illness or catastrophic injury often leaves people with more medical debt<\/span> than they can afford.<\/p>\n

Personal bankruptcy<\/span><\/a> allows you to eliminate medical debt<\/span> by filing Chapter 7 or Chapter 13 bankruptcy<\/span>. Chapter 7 discharges all medical bills<\/span> without repayment, while Chapter 13 discharges most medical debt<\/span> through a repayment plan<\/span>. This article reviews which one is more practical for you, and whether a bankruptcy is ideal for someone in your situation.<\/p>\n

Medical Debt<\/span> and the Bankruptcy Process<\/span><\/strong><\/h2>\n

Medical bills<\/span> are nonpriority or general unsecured debt<\/span>. Some people charge medical bills<\/span> to credit cards<\/span>, which only makes the situation worse with interest charges. Fortunately, both medical bills<\/span> and credit card<\/span> debt<\/span> are dischargeable in bankruptcy because:<\/p>\n