by Audra Stania
Can I just file a medical bankruptcy and only list my medical debts? A more than fair question because often times a person is able to service his/her outstanding debt until the unthinkable and unplanned happens. Even with insurance a medical emergency can cause the most financially responsible person to fall into a pit of debt that is insurmountable. When those bills start rolling in you can call each department and try to set up a payment that is acceptable to the creditor and that you feel you will be able to pay; then after months and months of making those payments on time you receive notice that you are being served with a lawsuit and the creditor could garnish wages for up to 25% or freeze bank accounts. It seems unfair but it does happen.
The good news is that medical debts are dischargeable in a bankruptcy. The news that is unsettling to some is that you are required to list EVERY debt that you owe when you file a bankruptcy. That includes unsecured debts (ie: medical, personal loans, payday loans, credit cards, repossessions and foreclosures), secured debts (even if you plan on keeping the property), debts that may not be dischargeable (such as certain taxes and student loans) and even debts that are owed to family and friends.
Compiling the list of debts can be another source of frustration. Some people can list all of their debts without thinking about it but sometimes there are debts that are very old or, in reality, sometimes there are just so many debts that it is overwhelming. A visit to our office can help clarify the creditor information that will be needed to file your bankruptcy, where and how to find this information and even what to do if you discover a creditor you forgot to list after the bankruptcy has been filed.