If you're worried about your medical bills, it doesn't matter whether you already receive Medicaid benefits, you've receive some but not enough to cover all your expenses, or you don't qualify for Medicaid – bankruptcy may offer you a viable solution for easing or eliminating your debt.
Bankruptcy can offer some powerful protections, but is it right for you? Get the answers with a free case evaluation by an attorney in your area. Simply fill out the case review form below to connect with a local lawyer today.
Eligibility for Medicaid & Bankruptcy
It's no secret that medical costs in the United States can cause serious financial distress to a household budget. And even some families that struggle to afford health care or lack sufficient medical insurance may not qualify for Medicaid protection.
That's where bankruptcy might come into play.
- Chapter 7 bankruptcy: This type of personal bankruptcy allows filers to discharge some or all of their unsecured debts, including medical bills. In order to qualify for Chapter 7 bankruptcy, filers must demonstrate that their income falls below their state's median, or that their income-to-expenses ratio is sufficiently low. (A bankruptcy lawyer can help you work out the specifics for your family.)
- Elimination of Medicaid debt: Once you file your Chapter 7 case, you may be legally excused from paying some or all of your medical bills (this excusal is called the debt discharge). In addition, the bankruptcy court may excuse you from paying other unsecured debts (such as credit card debt) – keep in mind, though, that certain debts, such as some taxes and student loans, cannot be discharged even in bankruptcy.
- Eligibility for Medicaid benefits: Filing for bankruptcy should not affect your eligibility to receive Medicaid benefits, and receiving Medicaid benefits should not affect your eligibility to qualify for Chapter 7 bankruptcy protection. Both Chapter 7 bankruptcy and Medicaid are designed to provide some form of financial relief to people with lower incomes.
Will You Qualify for Bankruptcy?
While struggling with medical bills can be unpleasant to experience, bankruptcy can provide a form of relief. Even if you receive government health benefits, you may be able to experience the benefits of bankruptcy.
In fact, the bankruptcy court makes no distinction between people who need bankruptcy protection because of medical bills and those who need bankruptcy protection because of credit card debt or other financial obligations. What really matters is your honest inability to pay your debts and your potential to get relief under bankruptcy laws.
Speak with a Lawyer for More Information about Medicaid Bankruptcy
If you're ready to find out whether you might qualify for bankruptcy or even learn what filing for personal bankruptcy might be able to do for your medical debt, it's time to connect with a bankruptcy attorney practicing near you. Simply use the quick case review form below and connect with an attorney near you for a free legal consultation.